After the recent run up, LTC is now consolidating before making the next move. MACD and RSI 21 support upward movement. BTC has a very similar bull flag pattern. Confirmation will come when LTC or BTC break upwards out of the flag (LTC will follow BTC wherever it goes). Stops can be set below the flag or at the first support below it. If you're willing and able to hold through a potential correction, I think it's worth considering trading without stops as LTC is very likely to see a new ATH before the year is over.
Additional considerations: Many traders, including myself, expected BTC to correct down to $4,800-5K (or lower). BTC bounced hard at $5,100, but returned to lower highs/lows, so it seemed a second correction might still be coming. However, today BTC experienced higher highs/lows and came within $100 of the ATH. It has also moved to the top of the flag and looks primed for a breakout. Fundamentally, we are only 5 days from the BTC/BTG fork and traders will start to accumulate before then so they can get their free money. All of this matters because whichever way BTC goes LTC will follow.
Note that far more experienced than I are bearish on BTC/LTC right now and have already either opted to short or sit this one out entirely. Ultimately though, we all have to decide for ourselves and I'm keeping an open mind until this flag breaks either way.
Additional considerations: Many traders, including myself, expected BTC to correct down to $4,800-5K (or lower). BTC bounced hard at $5,100, but returned to lower highs/lows, so it seemed a second correction might still be coming. However, today BTC experienced higher highs/lows and came within $100 of the ATH. It has also moved to the top of the flag and looks primed for a breakout. Fundamentally, we are only 5 days from the BTC/BTG fork and traders will start to accumulate before then so they can get their free money. All of this matters because whichever way BTC goes LTC will follow.
Note that far more experienced than I are bearish on BTC/LTC right now and have already either opted to short or sit this one out entirely. Ultimately though, we all have to decide for ourselves and I'm keeping an open mind until this flag breaks either way.
Comment:
I didn't realize that I had changed the chart to 1H prior to sharing it. Essentially, everything remains the same though, including the breakout points.
Comment:
LTC struggled along with most altcoins today as everyone poured their money into BTC ahead of the fork. Support held though so LTC is still in play. After falling to $57.xx this evening we had a fast rebound back up to $58.xx as some money started to flow back into alts. MACD supports upward movement, but RSI is showing overbought after the quick run up. A bullish pennant has now formed on the 15m charts for both LTC and BTC. We're going to have to close a candle outside the pennant for confirmation before taking the trade. If the run up plays out, you should be able to scalp some profits even if it runs out of steam again before hitting the target. Move your stop up as the price moves up.
