Litecoin Dollar LTCUSD
Testing important resistance at the old highs and so far standing up well.
Once again it needs buyers here to push it out of the reach of bears at current levels.
Litecoin found buyers exactly where it needed them and has
since pushed 5% or so higher. The longer term chart (left)
shows price straining against the old high , but actually it's
sitting right on top of it, trying to pin it down and use it as
support. It's doing well so far but the shorter term chart
shows price getting squeezed into a narrowing funnel where a
decision has to be made quite soon now...it either pops above
the upper dynamic and makes a run for 109 - amazing, but
possible, even though it seems unlikely. The Dow and Nasdaq
have done exactly that this year already, so it can't be
dismissed as outrageous altogether.
But, on the other side of the coin, there's also a 50/50 chance
(probably 60-40%) that price will lose the support of the lower
dynamic and then fall back to 89 at least.This wave of buying
has seen 4 smaller waves running inside the funnel, each one
getting smaller in size, which is hinting at potential
exhaustion here, a natural place to encounter profit taking.
Suggest raising the stop on longs to a little under the dynamic
support if day trading, and increasing longs if the upper
resistance line can be broken through and survive any retest.
swing traders can keep their stops at 88 for now.