Fortunately for traders and Litecoin enthusiasts, this deep bear market might be a good time for adoption according to Charlie Lee. Of course, since time immemorial, mass adoption of any product-centralized or otherwise attracts value and Litecoin is no exception. In the meantime though, Litecoin as well as most coins in the top 10 are registering double digit losses as sellers search for new 2018 lows.
From the News
- After realizing the destruction trail following their decision postponement of VanEck and SolidX Bitcoin ETF, the US Securities and Exchange Commission (SEC) is now carrying out a public opinion. Of course, as an unregulated market, the SEC is there to protect the uneducated investor who more often than not bears the full brunt of the market.
- Steve Wozniak, the co-founder of Apple is keen on meeting and interacting with big players in the blockchain community in the upcoming Crypto Invest Summit scheduled for Oct 23, 2018. Through an announcement, Steve said he was keen on challenging leading blockchain leaders to come up with innovative products that will not only bring utility but value for their users. More than 5,000 attendees are expected at the Los Angeles Convention Center. Other noteworthy speakers at the summit include former NASDAQ chairman David Weild IV, Ran Neu-Ner of CNBC and of course Tim Draper who will be signing off his books and holding a fire chat.
- As bears fatten up, Charlie Lee advised that this is the best time for adoption. He went ahead and pitched Lite.im which allows users to send and receive Litecoin at Telegram. Lite.im works through an SMS and lets anyone anywhere in the world not only to send and receive fund via Litecoin but they can check incoming addresses and Litecoin balances.
As it is, Litecoin prices are now trading at 2018 lows but that’s not what is conspicuous. From the weekly chart, we can see that prices did drop below Q1 2018 lows via a high volume bear break below by week ending June 10.
The same pattern is playing out this week and unless something drastic comes through, this week will end up bearish with sellers getting ahead of bulls breaking and closing below Q2 2018 as they register new 2018 lows.
These two, same style break below key support zone indicates how strong this bear momentum is. If anything, we can check simple metrics and note that Litecoin is down 85 percent from 2017 ATHs and likely to drain more value in coming days.
Now, because of this clear lower lows and important close below $70, we recommend shorting with first targets at $50 and later $30. The only time this sell projection would be null is once we see buyers thrusting above $90 and $110. If not, selling on every high in lower time frames seem like a nice plan.
The path of least resistance has been ascertained. Since bears are in charge, then we must trade with the trend acknowledging that bear break out pattern of June 10 and the consequent break below our $20 trade range at $70.
In line with our previous Litecoin (LTC) technical analysis, we suggest selling on pull backs retesting $70 with stops at $70 and first targets at $50.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.
Litecoin image via Shutterstock.