Litecoin drifted slightly downward during the day on Monday, as we continue to find support at the $53 level. I think there is a certain amount of resistance of the $55 level as well, so we are range bound. However, I do like the longer-term buying of this market, and I think we are simply trying to build up enough momentum to turn things around again. If we can break above the $55 level, the market probably goes towards $60 above, and would probably be part of a general selloff of the US dollar. Longer-term, I suspect that we will probably go closer to the $75 level, but right now looks as if we are trying to build up a base for the next move higher. This is quite common in technical analysis, where you see sideways action in an uptrend, followed by another move higher.
Buying the breakout
I am more than willing to buy this market on a break out above the $55 level, but also suspect that longer-term traders are picking up little bits and pieces along the way before we get there. This only allows you to increase profits more than anything else, but in a controlled and the studied manner. I like adding 20 positions, it makes up for a lot of the volatility that you will see in this market occasionally. Given enough time, I think we will continue to secretly currencies rally but I also recognize that volatility will continue to be an issue occasionally. This happens and then markets like crypto currencies, they don’t enjoy the type of a quiddity that the Forex markets do. However, if you are willing to hang on for the longer-term, it is possible to build up a substantial position over the next several weeks as we continue to test the bottoms.