LiteCoin continues to perplex most traders, as we are content to go sideways. On the chart attached to this article, you can see that we have seen support at the 61.8% Fibonacci retracement level, at roughly $47.28 recently. We have bounce from there a bit, but we seem to be comfortable bouncing around the 50% Fibonacci retracement level which is currently the $40 level. I believe the pullbacks continue to be buying opportunities, and that eventually we will go much higher. However, there is a bit of volatility ahead, as although LiteCoin looks relatively positive, it seems to be a bit of a laggard when it comes to the crypto currency world.
The importance of $47
I believe that the $47 level will be supportive, mainly because it was so resistive in the past. Pullbacks of that area should continue to attract buyers, and I think that part of the problem that we have above is that the market has been fighting the $50 handle which has a significant amount of psychological importance attached to it. In an odd twist, it seems that this market mirrors the WTI Crude Oil market lately. Both are struggling at the same levels.
If we break down below the $47 level, I think that the market would essentially “reset”, looking for support closer to the $45 level. It is not until we break down below that level that I would consider selling. I still believe that this market goes higher, but obviously the $50 level has been very resilient for resistance. I think most of it is profit taking though, and not real resistance. Eventually we will break above there and be able to hang onto a trade for a much longer amount of time. In the meantime, buying short dips will probably be the best way to trade this market.