BTC and LTC trading short term
First up with BTC we are looking at continuing hard resistance at $18,000. More than likely we will be testing it again sometime this morning.
LTC had wonderful bullish moves today, and now that we have moved up, I am certainly seeing the signs of the market reclaiming some of those profits. Going into today I expect to return back down to the $275 range. Although on fundamentals, as long as BTC holds up or grows, so will LTC. Bands are tight and we are looking at a breakout coming one way or the other. With RSI already in the 50's, and a general high price, the safe bet is bearish.
The most important thing to watch today: Watch for BTC to test $18,000, and if its rejecting, it may be a good time to look into a short term trade on LTC.
RSI is basically a quick way to tell you if it is oversold, or overbought, in the period of time you set it to. generally, a good way to do it, is look at the RSI over a short term, medium term, and long term. Long term being like a couple weeks. If the RSI in all three cases is low, that is a good indicator that it is a good entry point. If you combine this with other tools, you can gain a very confident entry into a trade.
4 or 5 more hours of same trend expected until morning hours. Not expecting to see this drop as much as I thought when I made this post originally. But as I said in the original post, I expect LTC's movement to almost entirely be based on the movement of BTC this morning with an inverse relationship.
BTC looks like it wants to test 18k soon, watch and plan accordingly. GL
What are your thoughts on LTC now that BTC has broke out above $19k ?
Can you give a total n00b a quick rundown on what RSI is? Also, if BTC doesn't break above $18,000, what type of short term trade are we looking at on LTC?
As you can see the RSI on the bottom, it is right in the middle around 51. It is up to you to decide how low or high the number has to be to be considered over bought or over sold. generally I see 32 as oversold, and 67 as over bought.
As far as a trade on LTC, I am currently waiting for LTC to dump back down to its recent lows, and get a confirmation that BTC will not go above 18,000. If both those things come true, I will enter into a LTC trade. If not, I will look for another chance somewhere else.