New to Bitcoin? Make sure you read the things you need to know about the Bitcoin Market in Canada. We've put all you need in this updated post!

Litecoin Market Update July 12

BruceWayneBruceWayne Member Plus
Been awhile since I did one of these

image

Here's the aftermath of the massive correction a few days ago. I've been a long supporter of LTC and I've been riding it since $1.40 and cashed out of my position at $6 and started actively shorting since, usually with quick exit points. Thursday night I made my single biggest trade gain by shorting in the high $7 and held on even as it ripped well past $8. It was really just getting carried away and was clearly getting pumped in the three days prior.

I covered my short in the high $4 range and started going long again since. I drew two large green lines at $3.60 which shows were there's support and at $5.30 where there's resistance forming. The average price for LTC during 2013 was around 0.025. Personally I think anything below 0.02 BTC is a buy and 0.03 as a sell and anything below 0.01 is a complete fucking gift if you ask me. I don't mind LTC at $5 but I wouldn't be a convicted buyer. I've also put in a small support line at $4.80 which seems to be where we have some minor support which may mark as a good price to buy in, conversely since it's rather weak I wouldn't jam all in since it can easily break and move towards that $3.60 mark.

I think a lot of weak hands have been run out of LTC since prices are more or less becoming more stable again with potential to continue to move up along with the general market. I personally don't buy into the Greek hype since I don't believe that a very broke country can have a significant move on the market, but, I do think that this is a wakeup call to Spain, Portugal, etc as well as the general public which is a reminder that BTC is a really effective way to move money around without the need to your typical financial infrastructure.

Comments

  • BruceWayneBruceWayne Member Plus
    ....and almost right on friggen queue it pulls right back to $4.70 which I marked as potential support. I'd be looking to see if this holds or pushes lower to $3.60. I'm starting to watch a whale move from exchange to exchange clearly manipulating prices so I really would not try to trade any of this. Might be due to Greek negotiations and if that's the case then this market is really trading on very flimsy principles and is more a gambler's market
  • BruceWayneBruceWayne Member Plus
    Here's something interesting I've been noticing; prices are now higher on USD-denominated exchanges while Chinese exchanges keep trying to push down the prices. For most of the past few months it was quiet until around 6pm PDT when the Chinese would start buying like crazy. My only guess is that Chinese traders are now net shorters after that massive correction.

    image

    I drew in a quick Fib retracement graph which shows that the last line of the retracement which was roughly around the support line I highlighted last time. The significant reason that this line is being held is that a drop below it would probably mean a return to $1 range. My guess is that if this range holds and pushes back above $4 we may see margin calls on the short sellers and watch a massive pop as people are forced to buy back at a loss.

    I'm still watching this play out but USD exchanges are $0.10 above CNY exchanges, usually it's the other way around. Seems Western traders are bullish which Eastern are bearish.
Sign In or Register to comment.