If LTC is silver and BTC gold then why the price disparity? Is there some serious LTC undervaluation in a platform and a coin that is faster to settle and available at a discount? Will LTC prices hit $1000 in the next few months if BTC stall?
Of course all these can be possibilities and implication of LTC under valuation. Faced by ragging BTC prices, we can only sit back and hope LTC charts along the same path. Let’s not forget that LTC is the mother of all alt coins, has better scaling capabilities that BTC and the development team/founder are aggressively marketing this coin.
To the charts and we can see that prices are above the $100 support-previous resistance level. If investors see LTC as an under-valued digital asset then prices might continue with its move towards $156 which is the Fibonacci extension level drawn from February-November high-lows.
Chances are high that this might happen. The stochastics are still bullish and prices banding along the upper BB of the weekly chart which is rare by the way.
Additionally, we must be encouraged by LTC price action turning from around the 50% Fibonacci retracement level meaning that even though there was a dip, bulls were strong enough to resume the original trend at typical reversal levels.
In the daily chart, it is obvious that the support-previous resistance at around $100 is significant judging from price action characteristics.
As noted, it is 5 days of price consolidating-clear in the weekly chart-within a $7 range accompanied by long lower wicks testing support.
Regardless of a bear divergence-LTC higher highs and stochastics lower lows-we still maintain a bullish skew advised from price alignment in the weekly chart. If today ends up as bullish and LTC close above December 3 highs of $107 and the upper limit of our ascending channel then all long positions are valid.
Our entry chart shows a stochastic buy signal in progress which is positive for LTC bulls.
Other than this, we shall watch two important levels which if breached to the upside validates a bull run.
First, the minor resistance trend line forming the upper limit of the minor wedge between December 4 and 7 and the 20 period MA average.
As price action in the daily chart are rejecting LTC prices below $100, it is likely that LTC will appreciate going forward.
Because of this, buy stops should be set above December 3 highs at $103.20