LiteCoin (LTC/USD) Analysis October 16, 2017
Litecoin initially fell during the day on Friday, reaching towards the $55 level. That’s an area that has previously been resistance, and it should now be supportive. When it up forming a hammer on the hourly chart, as we turned around and raced towards the $60 level again. Break above that level should send this market much higher, as we have seen so much in the way of bullish pressure as of late. This was a very interesting move for me, because we had seen such an explosive move on Thursday. Because of this, I think that the longer-term bullish pressure will continue, and move above $60 probably opens the way towards the $65 level next. The $55 level should now be massively supportive, and with Bitcoin rallying as hard as it had, it’s likely that the overall attitude of the market should continue to rally the value of Litecoin.
The pullback was roughly 50%, a common technical move
The pullback was 50%, which is a common technical move in financial markets, as the 50% Fibonacci ratio is a favorite. The market forming a perfect hammer of course is a nice buying opportunity, and for those of you that were quick enough, it’s likely that you have made quite a bit of money. However, I think there is more to go, so short-term pullback should be buying opportunities, as the market has a definite bullish bias. I have no interest in selling, and think that the $55 level should end up being a “floor” in the future. Longer-term, the move extends to the $65 level, perhaps even higher than that. Expect volatility, but for anybody who’s ever traded crypto currencies, they are ready should.