Litecoin (LTC/USD) Analysis August 21, 2017
Litecoin shot much higher during the day on Friday, as we continue to see plenty of bullish pressure overall.
We reached as high as the $48 level, and then started to consolidate a bit. I believe that we may see a nice buying opportunity, but we probably need to pull back to find enough value to attract more people into the market. I think the most obvious level is the $45 level, as it was resistance in the past.
That being said, I also believe that it is somewhat of a “zone”, as we often see. That zone extends to the $46 handle, so I’m waiting to see some type of supportive candle after a pullback to get long of this market yet again. The $45 level should be massively supportive at this point, so I think that given enough time the buyers will return.
Being patient will pay
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Looking at this market, I think that being patient will pay. Think of value coming into the market at lower levels, as we have already seen the inclination of traders.
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There is the possibility of “paying up” at the $48 level, and if you are working with a long enough timeline, then that might be feasible.
However, I truly believe that the market will give us a cheaper price to buy from. Because of this, I’m willing to be patient with this type of move. Impulsivity of the move is a very good sign though, and I’m the first to admit that there’s only one way to trade this market, and that’s to buy it.
In fact, I have no interest in shorting this market until we break down below the $42 level, which seems to be very difficult. In fact, I’m not even looking for a selling opportunity anytime soon, and I believe that we will continue to see the LTC/USD pair gain in value.
Longer-term, I anticipate that we will reach towards the $50 level.