The Litecoin/USD (LTC/USD) pair launched its bull run on December 1, 2017 when it breached resistance of $90. The momentum it carried was so strong that it went as high as $370.78 on December 19. In less than three weeks, the market grew by over 311%. This rapid growth was exploited by those who bought the breakout as they dumped positions.
As selling commenced, the pair went as low as $150 on December 22. On the same day, however, it closed at $248.38. The price action created a long wick under the daily candle’s body indicating the presence of buyers. This created momentum, which pushed the market up to $306.85 on January 6, 2018. Unfortunately for buyers at this area, the bears took control of the market, and sent it down to as low as $106.52 on February 6.
Technical analysis show that the Litecoin/Dollar pair broke out of a bullish reversal pattern when it went as high as $216.89 on February 14. The breakout was validated by heavy volume. More importantly, the pair appears to be in the process of creating a higher low at $190.
The strategy is to buy as close to $190 as possible. Once bulls successfully defend this level, the pair will likely resume its uptrend and reach our target of $360. The process may take less than three months.
Daily Chart of Litecoin/Dollar on Bitfinex
As of this writing, the Litecoin/Dollar pair is trading at $195.27 on Bitfinex.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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