Trading Spotlight — Cryptocurrency Litecoin ($LTC)
December 5th 2022
Today’s trading spotlight deals with the well known cryptocurrency Litecoin that I covered before. On the daily chart Litecoin looks a lot healthier than Bitcoin, as it does not have the recent big drawdown following the FTX bankruptcy or to be more precise, it bounces back from the bottom really fast. You can see my last story on Litecoin ($LTC) via the following link: https://medium.com/coinmonks/trading-spotlight-cryptocurrency-litecoin-ltc-c043c9f89798
Looking at the recent movement of Bitcoin and Litecoin, there might be some room for Litecoin to spike and provide a good opportunity for a Long trade. This trade might lead to a Short trade later. On the daily chart below you can see the next bigger resistance (upper red line) of Litecoin is in the $96 area.
This will be the best target area for the Long trade idea, while only risking about $3–5 per Coin. So the idea is to get an entry somewhere between the $80 — $85 range, if Litecoin holds up where it is right now, looking to spike up besides Bitcoin. On the daily chart below you can see the current price movement of Bitcoin. I think we might see a release rally bringing Bitcoin up to somewhere between $18k — $19k before eventually going down further.
I think Bitcoin can rise up to the level where the resistance line is, which before was a support line from June to November.
For Litecoin on the shorter term you can refer to the below hourly image.
After the initial spike on the left it slowly grinded down, but after the flush to ~ $71 it ran up again and consolidated very tightly and squeezed above the recent high (around the green line). If it consolidates for a few days, like it did before crossing the green line to the upside, I believe we will see another movement like this. To some point depends on the Bitcoin movement. If BTC dies, LTC will probably go down to some point with BTC.
If Litecoin can get to the initial target area of $96ish, there might be a good Short opportunity there. If the price moves like this, I will provide you with another Trading Spotlight for Litecoin.
Hope this helps to get some insight into my trading thoughts. Feel free to comment or send me a message on Twitter if you have any questions.
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Have a great start to your week and stay safe!
Niklas
This is not financial advice, it is for educational purposes only!
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