Recently, I called the breakout towards $180. I even took a couple of long trades, but took profit early. I hold a LTC spot position from $110 (bought using my profits from XRP), and I successfully traded LTC in 2019 (entering at $32 and selling to ETH at 0.5 on the ratio). Here is my recent LTC trade, where I called the $180 level, and also speculated that other altcoins could start moving soon.:
Here is the current chart zoomed in:
It's pretty simple. Litecoin has been in an ascending broadening formation since October, 2020. Recently, it just broke ABOVE the rising resistance line. This is usually an incredibly bullish sign. As I've mentioned recently, when price breaks out from an UPTREND resistance line, it shows that it can go parabolic, as the slope of the uptrend is no longer suppressed. The slope can then become even steeper until an eventual blow-off top is reached. Where will the top be? No one knows? But I placed targets at $250 and $500. I think if ETH breaks its all-time high soon, other "blue chip" alts can follow.
The 4H oscillators are looking somewhat neutral, so it can really go either direction here.
On the downside, if LTC cannot sustain above this resistance, it can fall to the middle of the wedge, currently between $110-120. If that fails, it can fall to the bottom of the pattern and retest the $80 level. There are two pretty clear trading opportunities here, on the long and short side. I think alts present more clear trading opportunities right now, because most have not reached ATH levels. Bitcoin is in uncharted territory (literally), so calling a top will be more challenging.
That's it from me! This is not financial advice. My writing should be used for speculative, educational, and entertainment value only.
-Victor Cobra
Here is the current chart zoomed in:
It's pretty simple. Litecoin has been in an ascending broadening formation since October, 2020. Recently, it just broke ABOVE the rising resistance line. This is usually an incredibly bullish sign. As I've mentioned recently, when price breaks out from an UPTREND resistance line, it shows that it can go parabolic, as the slope of the uptrend is no longer suppressed. The slope can then become even steeper until an eventual blow-off top is reached. Where will the top be? No one knows? But I placed targets at $250 and $500. I think if ETH breaks its all-time high soon, other "blue chip" alts can follow.
The 4H oscillators are looking somewhat neutral, so it can really go either direction here.
On the downside, if LTC cannot sustain above this resistance, it can fall to the middle of the wedge, currently between $110-120. If that fails, it can fall to the bottom of the pattern and retest the $80 level. There are two pretty clear trading opportunities here, on the long and short side. I think alts present more clear trading opportunities right now, because most have not reached ATH levels. Bitcoin is in uncharted territory (literally), so calling a top will be more challenging.
That's it from me! This is not financial advice. My writing should be used for speculative, educational, and entertainment value only.
-Victor Cobra
Comment:
Still at a decision point. Depending on how you draw the trendline, LTC is still holding above it. But it's certainly in danger of a larger correction soon if it can't sustain a breakout above the $180 level.
Comment:
Looks like the short setup was the one to take here - LTC currently close to the middle of the wedge. Should ideally find support here, if it's going to continue the uptrend. Otherwise, a deeper drop could result in a much longer correction.
Trade active:
After a failed long in the $166 area (I was not expecting a drop that fast), I now have an active trade from $126, targeting $180 and then potentially $250. Stop loss is a little below today's low.
Comment:
Stop loss moved to break-even.
Comment:
I moved the stop down yesterday to avoid getting shaken out, which was a good move. Let's see if LTC can hold above the $141 level today. That would be a good sign for more upside, at least towards $160.
Trade closed manually:
Closed at $148 for profit. Seeing buyer exhaustion on Bitcoin, which unfortunately wouldn't be great for alts. LTC couldn't even get to $160 on this bounce, and the LTC/BTC ratio looks very weak. Will wait until another test of support or clearer signs of strenght.
Comment:
Looks like LTC is finally back at $160 and the altcoin market is looking stronger again. I think if LTC can continue to push up here and build pressure on that resistance, it can make a very strong move to the upside.
Comment:
LTC met pretty strong resistance in the $160 area, and is now back at the uptrend. This might be my final chance to re-long, and also the last chance in the near term for LTC to break out and head towards ATH. There is substantial downside risk here, if this trendline fails to hold. But I'm seeing a decent hidden bullish divergence here on the 4H. The oscillator made a lower low, while price has made a slightly higher low so far.
Trade active:
Long entry: $133.20, SL a bit below today's low.
Trade closed: stop reached:
Got stopped out on the nasty wick yesterday. Trading this market has been really difficult lately, hence why I’m doing it with a very small amount for fun. Taking a break here. Will re-add to some spot positions if I see lower prices, but otherwise sitting tight.
Comment:
Looks like LTC may actually test the rising support of this broadening wedge without going much lower. If the support is held, it can actually make its next impulse toward $250. But if the trendline falls, that would be a sign of further weakness. Otherwise, it seems to be building support between $120-130.
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