Litecoin initially fell on Thursday, but found enough support near the $78 handle to turn around and reach towards $82 by the time the Americans took over.
The market looks likely to consolidate in this general vicinity but most certainly has a significant amount of support just underneath. On the hourly chart, we had formed a “W pattern”, and we now are extending gains.
If we can break above $84, it’s likely that the market will continue to go higher, perhaps towards the $92 handle. Either way, I think that pullbacks at this point look like value in a market that has seen a significant amount of buying pressure over the last several sessions. Remember, you are trading against the US dollar, so it helps if the US Dollar Index is falling, which it has been.
Currently, my longer-term target is closer to the $94 handle, and it’s likely that we will reach their relatively soon. Once we break above there, the market is free to go to $100.
That’s not to say that it will happen overnight, but certainly we are starting to see a significant amount of buying in the Litecoin market. As the US dollar has been so beaten up, I prefer Litecoin against the US dollar versus other currencies.
As things stand right now, I suspect that the $70 level will begin to offer a “floor” in the market. While we will see volatile pullbacks, it’s obvious that people are willing to pick up Litecoin at lower levels based upon value.
I do not have any interest in shorting Litecoin at the moment, as it seems to be outperforming several of the other crypto currencies that I follow. Adding in incremental pieces might be the best way to go, as it allows you to deal with the volatility in a market that is shaky at times.