Southkorea
Litecoin, back to basicsCurrently in a wave of uncertainty, I wanted to take a look at LTC as one of the key market driver after the big 4 and ADA. Litecoin does have around 10 biliions market cap and is listed as the 6th major cryptocurrency.
The recent price evolution was mainly guided by the cryptoban in South Korea. LTC has lost more than half his price since all time high (51.3%). During this bearish period it has stayed mostly within the 2/3 center of the regression trend. Currently stuck between 161 support and 219 resistance.
As the Korean government report mention, the crypto trading will not be ban only the anonymous account will. Therefore, they only need to link their trading accounts with a real bank account. This measure might look logic for most of the people, while in South Korea this is not. The crypto market intend to be as distant as possible from the centralization of the banking system, in that way, it is a clear setback / loss for the cryptoworld. That being said, the worst case scenario is an extension of this process to the rest of the world, which can be a real disaster. We see exception in small countries around the world who embrace the Cryptocurrencies (not only the blockchain), we could here mention Switzerland who had a recent event with the crypto community and their political elites who clearly see this as a positive factor for the economy.
Back to LTC, the uncertainty regarding the probability of the extension of the South Korean mesure to the rest of the world remain low, but still exists and must not be ignored, therefore we could expect LTC to get back on a bullish trend as this case can be look (in a certain way) as settled. For some investors and analyst, this marks the end of the period and a great opportunity to buy coin at a lower price.
For what the technical analysis shows us, their is still a certain downside margin before touching the resistance mentioned above. The graphs looks pretty much like a school case scenario where the Fibo retracement match almost perfectly the support/resistance. While I don't expect the price to get below 160 USD/coin, some analysts see the probability that the price hit 140 or even break that major support. In both case, a rebound is expected in the days to come (if their is no political news popping again)
In conclusion, I see LTC as a tool strongly bended by the media intelligence and the political events. If the overall markets performs well LTC will be in the group. Don't forget that LTC is on Coinbase, the main platform to buy crypto via fiat currency and his the only of the offered coin who don't have huge transfer fees. That give him a advantage and the opportunity to outperform BTC and ETH.
Analysis done by The Foil
23.01.2018 21:46 CET
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Why is there no direction in the price of the Bitcoin?Acutally, so many outside influences make it difficult to predict which way the price of Bitcoin will go. Bulls and bears keep the price well in a balance and it remains inside a narrow bandwidth with very low volumes. Let us try to see the whole picture. I list here the main fundamentals and present a chart, which shows the partly interfering trends and signals.
What are the fundamentals?
• News from South Korea about banning cryptocurrency trading in the future.
• News from China about banning cryptocurrency mining and verification.
• Right now, China hosts 80% of the computer capacity for the Bitcoin blockchain. Will operation of the Bitcoin come to a temporarily halt? Will investors lose Bitcoins? What about the mining contracts? How long will it take to replace this huge computer capacity?
• News from USA that they will sell seized Bitcoins worth over 300 million US-Dollars.
• News from Bulgaria that they will sell seized Bitcoins worth 3.5 billion US-Dollars.
• Because of the newly implemented high transaction fees, will Bitcoin survive as a payment coin?
What can we read in the chart?
• There is a red dashed line at 14129. Below that line, the scenario is bearish and above that line, the scenario is bullish.
• There is a triangle, drawn in dark-blue color. Bitcoin is actually at point 4. From there, it should continue in direction of point 5 and there, it should outbreak on the upper side of the triangle.
• However, we see that the price moves in direction of point 4 again instead of point 5. Will there be a downside breakout today? In the last few weeks, we experienced already enough downside breakouts.
• Since January 7, 2018, the value of the Bitcoin moves down inside a channel with blue dotted borderlines.
• On the same time, it is also within a sideward channel build by the red dashed line and the yellow dashed line.
It is not very likely that we will see a decisive move in either direction. I expect over the weekend low volumes and the price oscillating inside the square that is built by the blue downward channel and the sideward channel between the red and the yellow line.
However, we have to be prepared for a downward outbreak, which would result in a free fall down to the level of 5568. This could happen if some traders would start selling in panic in a market with low volumes. In this case, use the opportunity for buying cheap Bitcoins.
What is the best strategy in such a quiet and boring market?
Two subjects are becoming important in such a quiet market:
• Market Corrections
• Portfolio Erosion
Goldbug1 has written a great article about both subjects. I recommend reading it. Personally, I learned important things about how to trade such a difficult market. It is really worth reading about his strategies. Please click on the chart below for reading it.
I wish you good luck, happy trading and a great weekend.
Luckyhelper
ICX - A Strong, New Mover in the Crypto SpaceI've been following BINANCE:ICXBTC since their ICO (icon.foundation). It's a truly remarkable project, with futures being traded on HitBTC for over a month now. The price as been as high as $8.00 on that platform, and has "leveled-out" with the launch of proper ICX trading on Binance (www.binance.com if you haven't signed up yet).
We have a very strong uptrend on the 4 Hour, which looks poised to see some bullish MACD action soon. If not, I'm looking to reload in both of the green highlighted zones.
A bullish breakout of our current Fib extension would target a whopping 0.0013.
Remember when NEO was Anrtshares and it was only $5.00? NEO is my fractal model for ICX.
TNFA, DYOR, etc.
Bespoke cryptocurrency & blockchain consultation:
www.MinervaMiningCo.com
Long LPL on Bullish Price ActionIt's been a while since I've published an idea, but that hasn't worried me. I'm not in the game of trading just to trade. I'm in the game of making as much money as possible. If a move isn't attractive to me, I won't bother making it just for the sake of trading. Most of my recent research has been in foreign markets such as Russia, South Korea, and Vietnam, and a blog post will be up soon about that. In the mean time, let's look at LPL.
LPL's price action is golden, after lower high and higher lows, LPL's chart came into a consolidating triangle pattern and has since broken out on the weekly charts in a bullish manner. I took a position in LPL right when the price action broke the triangle, and risked 1% of my capital. I put my stop below the other end of the triangle which would signal a reversal in the price action and an incorrect thesis on my part.
Trading at 7 times earnings, and 11% discount to book value, LPL has the fundamentals to run, and being in South Korea, an economy that has bullish indicators, I like this play.
As always, shoot holes in this if you want.
All the best,
RC
