Daily RSI has shown strong bullish momentum since we bounced off July support at 47 in September. Price has moved above our 2020 high's and Litecoin is currently valued almost 200% higher than it was in March 2020. We expect price to continue moving upward.... BUT
Time to SELL?
For those still holding March 2020 bags, now might be the best time to sell, take 2020 profits, and hope for a healthy retracement. Weekly RSI is approaching levels that historically have triggered a retracement. However, we feel this is the first leg up of a multi-year bullrun that we feel will eventually set new ATH. Remember, Litecoin is still in its earliest stages of public awareness.
Respect the US stock market
Cryptocurrencies have a tendency to follow the trend of the US stock market. Swing Traders hoping to sell at the Top need to consider the fact the the US stock market has reached a pivotal moment in history. The DJI topped at 29,950 this week... The Dow has completely recovered its 2020 bear-market loss. This is a bullish sign, and investors can expect the up trend to continue through the end of 2020. However, there is always the possibility of a market catalyst that could spur a W shaped recovery which would revisit 2020 lows.
Government response to COVID
California and New York are preparing to completely shut down their economy to try to curb the rise in COVID-19 cases. Many other State governors are determining their own coronavirus response which means businesses and schools across the country could be shut down until early next year. Shutdowns could send the stock market spiraling back to retest 2020 lows.
The End of 2020
Barring a public shutdown, bullish momentum should continue beyond 2020.
Time to SELL?
For those still holding March 2020 bags, now might be the best time to sell, take 2020 profits, and hope for a healthy retracement. Weekly RSI is approaching levels that historically have triggered a retracement. However, we feel this is the first leg up of a multi-year bullrun that we feel will eventually set new ATH. Remember, Litecoin is still in its earliest stages of public awareness.
Respect the US stock market
Cryptocurrencies have a tendency to follow the trend of the US stock market. Swing Traders hoping to sell at the Top need to consider the fact the the US stock market has reached a pivotal moment in history. The DJI topped at 29,950 this week... The Dow has completely recovered its 2020 bear-market loss. This is a bullish sign, and investors can expect the up trend to continue through the end of 2020. However, there is always the possibility of a market catalyst that could spur a W shaped recovery which would revisit 2020 lows.
Government response to COVID
California and New York are preparing to completely shut down their economy to try to curb the rise in COVID-19 cases. Many other State governors are determining their own coronavirus response which means businesses and schools across the country could be shut down until early next year. Shutdowns could send the stock market spiraling back to retest 2020 lows.
The End of 2020
Barring a public shutdown, bullish momentum should continue beyond 2020.