Litecoin together with many other cryptocurrencies has been losing value against USD and has dived from a price of $370 recorded on the 19 Dec 2017 to $55. It is an 85% loss in value and it may grow in the next 2 weeks. The key support, however, is in the $40s and $50s area where it resided for months last year. The angle which was almost vertical at the beginning of the downtrend is flattening and a truncation could happen once the 4th and the 5th waves are completed. The cryptocurrency remains an excellent long-term investment opportunity.
There are plenty of buyers for LTC and many more will pop in if the price drops below $50. The price could, however, hover in the $50-$80 area during a possible ABCDE corrective pattern. A key resistance might develop at $110 which served as support a number of times during the dive. The TPs for longs will, therefore, be $75 and $108. The entry is the $40-$55 area with StopLoss below $38. For any of those who would rather play safely, I suggest monitoring the market until the price exited the downtrend and is part of a consolidation or uptrend.
Winning trades for everyone! Cheers!
NOTE: The angles are correctly built, but whenever I tried to publish the idea the lines of the angles would move from their initial place. I hope that does not cause inconvenience. Thank you.
There are plenty of buyers for LTC and many more will pop in if the price drops below $50. The price could, however, hover in the $50-$80 area during a possible ABCDE corrective pattern. A key resistance might develop at $110 which served as support a number of times during the dive. The TPs for longs will, therefore, be $75 and $108. The entry is the $40-$55 area with StopLoss below $38. For any of those who would rather play safely, I suggest monitoring the market until the price exited the downtrend and is part of a consolidation or uptrend.
Winning trades for everyone! Cheers!
NOTE: The angles are correctly built, but whenever I tried to publish the idea the lines of the angles would move from their initial place. I hope that does not cause inconvenience. Thank you.
Trade active:
The price made a low at $49 and has been moving up since then. The uptrend is clearly visible on the 4h chart. TP1 for buy orders is at $63.600 (weekly pivot).
Trade active:
TP1 achieved at $63.600.
Trade closed manually:
The price is consolidating in the ~$50 area.