LTCUSD has ground-up to cost basis seeing the market on average now breaking-even. The cost basis line being a natural price target for those buying at the lows i.e. naïve structure trades.
Minor profit taking has now taken place = with realised PnL (refer to Histogram).
Herein lies the issue - the market on average is at breakeven, but no new capital has rushed in (yet) to push prices higher. The risk of disequilibrium and downside risk management is now the issue faced by the average LTC holder. Hodl'íng has certainly paid-off, but will the pace of breakeven trading accelerate to see further downside pressure with prices falling back into the range? Two points to note here:
1 volume has picked-up on the latest red candle; and
2 LTC's rate of return compared to other cryptos such as BTC and Doge has been good - bit not great!
3 Event risk - but that's a commonality.
LTC is an unique case. Unlike BTC and Doge most holders of LTC have experienced a roller coaster ride of an equity curve - profits, net losses and now back to breakeven. That's quite a different experience and hence psychology faced by holders than those of BTC and Doge; where most capitalization has been in open profits with 1-5% of capitalization caught out swing trading.
LTC provides a good working basis to:
- trading from the perspective of what other traders are perceiving - an important skill set to develop. Phycology doesn't just means your own - it also means what others are experiencing
- trading plan development - is this a break trade, or a buy on limits at lower prices in the range?
For me personally, I am long BTC. Have been Long Doge. For LTC trading, I want to see prices above Cost Basis and with successful NOT failed re-tests.
Please note: Whilst I have 25 years trading, finance industry experience, and won the John Brooks Memorial Award (IFTA) I do not use technical analysis per se. I write my own analysis tools which do not borrow from technical analysis methods.
Minor profit taking has now taken place = with realised PnL (refer to Histogram).
Herein lies the issue - the market on average is at breakeven, but no new capital has rushed in (yet) to push prices higher. The risk of disequilibrium and downside risk management is now the issue faced by the average LTC holder. Hodl'íng has certainly paid-off, but will the pace of breakeven trading accelerate to see further downside pressure with prices falling back into the range? Two points to note here:
1 volume has picked-up on the latest red candle; and
2 LTC's rate of return compared to other cryptos such as BTC and Doge has been good - bit not great!
3 Event risk - but that's a commonality.
LTC is an unique case. Unlike BTC and Doge most holders of LTC have experienced a roller coaster ride of an equity curve - profits, net losses and now back to breakeven. That's quite a different experience and hence psychology faced by holders than those of BTC and Doge; where most capitalization has been in open profits with 1-5% of capitalization caught out swing trading.
LTC provides a good working basis to:
- trading from the perspective of what other traders are perceiving - an important skill set to develop. Phycology doesn't just means your own - it also means what others are experiencing
- trading plan development - is this a break trade, or a buy on limits at lower prices in the range?
For me personally, I am long BTC. Have been Long Doge. For LTC trading, I want to see prices above Cost Basis and with successful NOT failed re-tests.
Please note: Whilst I have 25 years trading, finance industry experience, and won the John Brooks Memorial Award (IFTA) I do not use technical analysis per se. I write my own analysis tools which do not borrow from technical analysis methods.
