LTC/USD Potential Breakout Weekend, But which way?
It's been an interesting 2 weeks with Litecoin, and it feels like the chart patterns have been influenced by news. On February 14th, we broke out of a looooong correction trend (dark blue lines) after meeting 3 lines of resistance (dark red lines). After the breakout, we saw what appeared to be a bull flag formation. The price rose out of the bull flag on Feb 20th and bounced around the 245 range for about a day, and then swiftly dropped to 216. Over the next 2 days, we saw more dramatic drops which bottomed out at 182 on Feb 22nd.
As mentioned earlier, it feels like "news" caused a lot of this movement. There was an announced fork on 2/20 where Litecoin Cash (no affiliation to Litecoin) was offering 10:1 coins for LTC coin holders. The breakout of the bull flag occured on Sunday evening before the "fork". After the fact, it appears investors buying LTC for the free coins drove up the price, and post fork selloff caused the drop.
Next, LitePay merchant processing company had announced taking their LTC payment processing "card" live on Monday 2/26. We saw a steady rise back to the 230 range on high volume in anticipation of the Litepay launch causing a moonshot rise. Unfortunately, Litepay came out on "live" day with news that credit card merchants were resisting acceptance of Litepay card, and no moonshot occurred.
So here we are on Friday, and looking at the charts...we see a triangle which has formed and is coming to a point over the weekend, but which way is it going to go? Will be watching closely and waiting for a sign of movement direction. As you most likely know, most cryptos follow Bitcoin, and BTC has been testing the 11,000 mark over the past few days. Litecoin ratios rose up to .23 during the pre-fork news and have come back down to around .19 over the past few days...and we are assuming these fluctuations have been attributed to the news over the past week.
One small concern is the pattern inside the triangle has the look of a very mild head and shoulders pattern forming. It we see a breakout of the triangle on the down side, we could see another substantial dip and buying opportunity. I'll be HODLing and keeping a close eye on Friday/Saturday movement. While not shown in this "idea", there is also a long term upside down head & shoulders pattern on the 4 hr chart since ATH in December. This points to a long term rise, so hoping for a nice gain over the next few months. As a day trader, the past week has been difficult. Made some nice gains on the pre-fork rise, but the Litepay fail quickly turned a great day into a not so great few days. Hoping to see BTC shoot past 11K and stay there so these dip buys will pay off. Otherwise, will look for more dips to increase Long stack and HODL until (hopefully) we see some nice long term gains.
This idea is exactly that....an idea. In no way should these comments be considered investment advice. Do your research, and trade at your own risk. And remember, crypto is highly speculative and highly volatile, so it is advised by many that you shouldn't risk more than you can afford to lose. Good luck to all.
As mentioned earlier, it feels like "news" caused a lot of this movement. There was an announced fork on 2/20 where Litecoin Cash (no affiliation to Litecoin) was offering 10:1 coins for LTC coin holders. The breakout of the bull flag occured on Sunday evening before the "fork". After the fact, it appears investors buying LTC for the free coins drove up the price, and post fork selloff caused the drop.
Next, LitePay merchant processing company had announced taking their LTC payment processing "card" live on Monday 2/26. We saw a steady rise back to the 230 range on high volume in anticipation of the Litepay launch causing a moonshot rise. Unfortunately, Litepay came out on "live" day with news that credit card merchants were resisting acceptance of Litepay card, and no moonshot occurred.
So here we are on Friday, and looking at the charts...we see a triangle which has formed and is coming to a point over the weekend, but which way is it going to go? Will be watching closely and waiting for a sign of movement direction. As you most likely know, most cryptos follow Bitcoin, and BTC has been testing the 11,000 mark over the past few days. Litecoin ratios rose up to .23 during the pre-fork news and have come back down to around .19 over the past few days...and we are assuming these fluctuations have been attributed to the news over the past week.
One small concern is the pattern inside the triangle has the look of a very mild head and shoulders pattern forming. It we see a breakout of the triangle on the down side, we could see another substantial dip and buying opportunity. I'll be HODLing and keeping a close eye on Friday/Saturday movement. While not shown in this "idea", there is also a long term upside down head & shoulders pattern on the 4 hr chart since ATH in December. This points to a long term rise, so hoping for a nice gain over the next few months. As a day trader, the past week has been difficult. Made some nice gains on the pre-fork rise, but the Litepay fail quickly turned a great day into a not so great few days. Hoping to see BTC shoot past 11K and stay there so these dip buys will pay off. Otherwise, will look for more dips to increase Long stack and HODL until (hopefully) we see some nice long term gains.
This idea is exactly that....an idea. In no way should these comments be considered investment advice. Do your research, and trade at your own risk. And remember, crypto is highly speculative and highly volatile, so it is advised by many that you shouldn't risk more than you can afford to lose. Good luck to all.
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