Don't just look at litecoin, focus on bitcoin for trend.
Litecoin has been doing well in terms of LTC:BTC ratio, staying between 0.018-0.020, however bitcoin is expected to decline to at least 2000, with a low of 1500. Momentum and FUD is strong, but I expect a rebound from the major currencies (BTC, LTC, ETH) by August 1st. The segwit2x event will most likely be a non-event. The major event to focus on is the hardfork after which is 1-2 months after activation of segwit2x. There has been no negative news in terms of LTC to bring a bearish sentiment.
I suspect short term plays may be done at the Fibonacci levels, so you can play the bounce and try to increase your position.
Bounce plays could be buying at $37-38 and selling at $42-45. Of course, it is much safer to sell at $42 and lower than at $45, but the reward will be lower. It is up to your educated judgement where to sell. Try not to panic sell and have alarms set up on your devices so that you don't look at the chart non-stop and accidentally panic sell.
I've put two possible long positions.
Point A is longing if you believe that LTC will be bullish in the medium to long term.
- Going long on Point A hopes that there is a bullish reversal at the bitcoin prices of $2200-2000, so look at both LTC and BTC for signals and volume to confirm reversals
- I hypothesize the probability is medium to low possibility that there will be a reversal happening at those price levels, as current bearish momentum is strong and the weekend is just starting.
If you're like me and have a maximum risk, maximum gains scenario, you'll want to enter Point B for a long.
-While B is riskier, we must remember that LTC:BTC ratios also decrease as BTC decreases. For the final target prices for B, I used the ratio to calculate the price targets with btc low estimated at 1500.
-- With a low ratio of .018 we have a low price of $27
-- WIth a high ratio of 0.20 we have a low price of $30
Personally, I'd enter in the $33-37 range to go long unless momentum displays otherwise. Remember to keep an eye on volume for signs of trend reversals. Low volume bounces indicate a higher risk of the price of the commodity to drop, as we saw this week. Once bullish momentum returns, I expect the market to continue moving upwards until the September BTC hardfork.
Best of luck. Don't forget, this is high stakes gambling. Don't risk what you can't afford.
*Ignore the DeMark indicators. I forgot to change the indicators this chart.
Disclaimer: I am all fiat as of the writing of this post. My professional background has nothing to do with trading/markets TA.
I suspect short term plays may be done at the Fibonacci levels, so you can play the bounce and try to increase your position.
Bounce plays could be buying at $37-38 and selling at $42-45. Of course, it is much safer to sell at $42 and lower than at $45, but the reward will be lower. It is up to your educated judgement where to sell. Try not to panic sell and have alarms set up on your devices so that you don't look at the chart non-stop and accidentally panic sell.
I've put two possible long positions.
Point A is longing if you believe that LTC will be bullish in the medium to long term.
- Going long on Point A hopes that there is a bullish reversal at the bitcoin prices of $2200-2000, so look at both LTC and BTC for signals and volume to confirm reversals
- I hypothesize the probability is medium to low possibility that there will be a reversal happening at those price levels, as current bearish momentum is strong and the weekend is just starting.
If you're like me and have a maximum risk, maximum gains scenario, you'll want to enter Point B for a long.
-While B is riskier, we must remember that LTC:BTC ratios also decrease as BTC decreases. For the final target prices for B, I used the ratio to calculate the price targets with btc low estimated at 1500.
-- With a low ratio of .018 we have a low price of $27
-- WIth a high ratio of 0.20 we have a low price of $30
Personally, I'd enter in the $33-37 range to go long unless momentum displays otherwise. Remember to keep an eye on volume for signs of trend reversals. Low volume bounces indicate a higher risk of the price of the commodity to drop, as we saw this week. Once bullish momentum returns, I expect the market to continue moving upwards until the September BTC hardfork.
Best of luck. Don't forget, this is high stakes gambling. Don't risk what you can't afford.
*Ignore the DeMark indicators. I forgot to change the indicators this chart.
Disclaimer: I am all fiat as of the writing of this post. My professional background has nothing to do with trading/markets TA.
Trade active:
Was able to buy for the bounce last night at 37.55. Target sell price is 42-42.50. Market is pretty choppy right now, but upswing is possible since it's testing the lower portion of the channel. Breaking the lower border presents with much resistance. Worse case scenario, it just keeps following the lower channel. Better case scenario it hits $43-44. Best case scenario, i don't sell and we moon (but that's pretty unlikely in this stage).
Trade closed: target reached:
Bounce trade completed at 42.50 for a 13% profit.
Comment:
Upper resistance hit. Expecting the price to keep following the upper channel until closer to the weekend. While there was a BTC announcement today, it's still not 100% supported. I will be playing the next dip very carefully.
