Litecoin Rises after Second Retest of $34 Breakout Level
Call it serendipity but my first few market commentaries on #steemit have illustrated the seemingly relentless drive of #cryptocurrency bulls to buy the dip during pull backs.
Specifically, I'm referring to #litecoin's recent retest of its $34 breakout level and subsequent rise back above $40. In my previous post , I noted that the second successful retest suggested that bullish momentum may carry forward in the near term. Sure enough, it has:
As the chart above shows, litecoin has traded as high as $42.46 today since its second retest and bounce off of the $34 breakout level on 6/27/17. This shows that buying interest in the overall market remains strong.
Note that it appears a daily close above $42 is needed for bulls to see further upside in the near term. Ultimately, the $50 level is the pivotal resistance area to overcome for a blue sky breakout to be in play. The $34 level still remains a critical support area for bulls to defend on any future pull backs.
From a fundamental standpoint, litecoin seems to be making headway in China, with the announcement earlier today that ViaBTC exchange platform will be adding litecoin #trading. This news should be well-received by litecoin bulls, as it reinforces its position among the top global cryptocurrencies since Asia is a significant market to break into.
If you haven't done so already, I highly suggest following Charlie Lee, litecoin's founder, on Twitter. He regularly updates followers on the latest happenings and it's important to stay informed given how quickly news is dissipated these days and its potential to sway markets.
LTC is in a great position, its been the sleeping crypto. I've been buying since it was 3 dollars. I like LTC right now even more, I believe its setting up for a big wave move up. Its steady and easy moving. It has very little drama too which is a good thing, all it means is, its time to setup a good position in it for the move up. It has a lot of good things coming for it. Can't wait to see how it develops.
I'm looking forward to seeing how #litecoin develops as well! Thanks for your comment.
@syncubate, thanks for the post! What is considered breaking the 50 resistance level? Is it relatively low volume levels slowing moving into upper 51's/52's?
No problem! To be honest it's tough to say because the market doesn't work in terms of black and white. Trading is more about mastering the shades of grey that markets work in. This is often said about stocks but it is no different with #cryptocurrency too.
I would contend that a close above $50 on the daily time frame would be a pivotal signal that demand for #litecoin may propel it into a blue sky breakout. This means that it is in uncharted territory. This is essentially what happened with #ethereum when it broke above the $20s for the first time ever earlier this year. I'm not saying that litecoin will fly into the hundreds in a similar manner, as no one truly knows, but it's worth keeping on your radar.
In the end, it's all about what your risk tolerance and time horizon is. The #crypto market is highly speculative but if you're willing to take some risk and are in no rush or need to reclaim your principal, then see what works best for you. Hope that helps!
Hey, I really appreciate your detailed response! I have been long on LTC for a while -- was just looking for your insight. Insight received! Best of luck on Steem!
LTC is already big in China, this news will make it explode in Asia! $50 is right around the corner :)
I saw Charlie's tweet earlier today about the latest addition of litecoin trading in China and it reinforced to me what @dr-physics told me yesterday.
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