Litecoin Analysis (LTC/USD) September 26, 2017
Litecoin initially went sideways during the session on Monday but then exploded well above the $50 level. By doing so, we broke above significant resistance, and now it looks like the $50 level could end up being support.
This would have been a bit of a safe haven bid after North Korean official suggested that recent comments coming from Donald Trump were essentially a declaration of war, and therefore they would be within their rights to shoot done US bombers no matter where they found them.
Obviously, this is nonsense and I see a lot of noise above that could turn this market right back around. If we do pull back, I like the idea of paying a lot of attention to the $50 level, and if we get some type of supportive candle or a bounce from that level, then I become a buyer of Litecoin.
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Volatility is a mainstay in the crypto currency markets, and I believe that the Litecoin markets will be any different. This bullish move is strong though, and I believe that jumping over 10% for the day helps. I think that pullbacks offer value, as long as we can stay above the $47 level, I believe that the buyers will continue to flock to these crypto currencies as most of them simply have no idea what else to do. Keep in mind that a lot of people buying crypto currencies are not traders overall, so there is a certain amount of “herd mentality” that dominates these markets, and most of them have never known a situation that is other than “buy the dips.”
If we can break above the $57 level, the market is free to go much higher, as it would be a break of significant resistance above. Currently, I am not interested in shorting.