Litecoin has finally broken out of the year long downtrend on major volume, and seems to have pumped the whole crypto market! I have officially turned bullish.
My chart has not changed because all the technical levels are still valid. As you can see on the daily chart, Litecoin has had a break out and has run all the way up to the resistance line / 200 day SMA. This is a strong resistance area especially because 2 levels are meeting at the same price right now. I am expecting a small pull back (especially with RSI nearing overbought territory along with resistance levels), but based on the price action and volume, this move should bring a continuation over the next few days / weeks. I would like to see Litecoin continue to find support along the 50 day EMA and break back above the 200 day SMA.
The only thing that would change my mind right now would be if Litecoin dips back down below the yearly trend line, but that's not likely IMO. I also believe that Litecoin's price action is still tied to Bitcoin, so if Bitcoin were to break below the 200 week SMA it could weaken Litecoin as well. However, that level has held for Bitcoin in the past and is holding now so I feel good about being a buyer right now. Risk is low and there are signs that the bottom could be in. If the technicals fail, then I can reduce my holdings with only a small loss and get back in cheaper.
We aren't out of the woods yet, but there are many signs that Litecoin has entered the accumulation stage of its cycle. Most likely there will be sideways action for a while but that would be healthy for the market, people need to see that a solid base is being developed.
For my twitter peeps, follow me for more frequent ideas / updates! My twitter link is on my trading view profile page.
*This is not financial advice. For entertainment and educational purposes only.
-Brad
My chart has not changed because all the technical levels are still valid. As you can see on the daily chart, Litecoin has had a break out and has run all the way up to the resistance line / 200 day SMA. This is a strong resistance area especially because 2 levels are meeting at the same price right now. I am expecting a small pull back (especially with RSI nearing overbought territory along with resistance levels), but based on the price action and volume, this move should bring a continuation over the next few days / weeks. I would like to see Litecoin continue to find support along the 50 day EMA and break back above the 200 day SMA.
The only thing that would change my mind right now would be if Litecoin dips back down below the yearly trend line, but that's not likely IMO. I also believe that Litecoin's price action is still tied to Bitcoin, so if Bitcoin were to break below the 200 week SMA it could weaken Litecoin as well. However, that level has held for Bitcoin in the past and is holding now so I feel good about being a buyer right now. Risk is low and there are signs that the bottom could be in. If the technicals fail, then I can reduce my holdings with only a small loss and get back in cheaper.
We aren't out of the woods yet, but there are many signs that Litecoin has entered the accumulation stage of its cycle. Most likely there will be sideways action for a while but that would be healthy for the market, people need to see that a solid base is being developed.
For my twitter peeps, follow me for more frequent ideas / updates! My twitter link is on my trading view profile page.
*This is not financial advice. For entertainment and educational purposes only.
-Brad
