Litecoin price looked healthy on Thursday, as we initially shot higher, pulled back, and attracted more buyers.
This is a nice move and it makes sense considering that the other crypto currencies have been doing fairly well, while Litecoin has been a bit quiet. It simply trying to play catch-up, as it should. I believe that the market will probably go looking for the next large, round, psychologically significant number, which is the $70 handle.
Once we break above there, becomes more of a buy-and-hold situation, but in the meantime, I think buying short term dips in incremental position sizes will be the best way to go. I think that the $62 level underneath will continue to be massively supportive, and I think that there will be plenty of attraction to this market as some of the other crypto currencies may have gotten ahead of themselves.
I have no interest in shorting this market, because quite frankly most of my indicators are starting to turn up again. As they turn to the upside, it makes sense that momentum will build up and traders will get back into the market so they can take advantage of this obvious build of momentum. Crypto currency traders thrive on momentum, and as the market is smaller than many others, it tends to pick up rather rapidly.
Keep in mind this can hurt you too, so small position sizes with a gradual increase is probably well advised.
If we do pullback from here, I would be surprised to see this market break down below the $62 level, which I think is the beginning of significant support that runs down to the $60 handle.
A breakdown below there would be horrible, and should send this market much lower. I don’t think that’s going to happen though, so I believe it is only a matter of time before the buyers take over.