LTC Update 15 January
Wednesday 15 January 2014
Since bitcoin still seems to be making up its mind ( but watch for a reaction @ $960 (Gox)), I thought we'd take the opportunity to look across at Litecoin.
Let's start with a chart:
As you can see, like bitcoin, we've traded sideways out of what looked like a nicely re-building uptrend. And while price hasn't actually moved that far (in real terms) the technical picture has weakened somewhat. Essentially, this sideways slide presents 2 opportunities against which sellers might launch a bearish counter-attack. The first is at $24.65 (point One) and the second is at around $26 (point 2).
Having said this price has, broadly, managed to stay within the limits of the long term uptrend and near term momentum looks to building again, so there remains every chance that this market will carve back up through resistance at a moment of its choosing.
And if this analysis sounds somewhat diffident its because directionality across all the main crypto-currency markets is weak. It would be foolish and counter-productive to draw emphatic conclusions when they are not supported by the current mood of the market, or the price action which that mood drives.
However, if I have learnt anything over the last 10 years trading it is that markets tend to make their most significant moves just as everyone watching them starts to fall asleep. The second thing I have learnt is that quiet markets offer the best opportunities for breakout - or momentum - entries. With this in mind, if LTC does suddenly steam back through $26 on real energy, you might consider a small momentum punt Long, if you aren't already in the market.
Rob @ BitScan
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