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The question I am asking at the moment is whether we are witnessing a 'short covering' rally at the moment in Litecoin and other Cryptocurrencies?

I think we are about to find out. It is difficult to tell at the moment and it could be that a further downward move may materialise or a new bullish upward move may begin. The only way of knowing as early as possible is to follow the price action and see what it tells us. 

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@GodInyou,

If you are asking if it is good to mine Litecoin then that really depends on you. It can be very costly so how deep are your pockets? Do you have the specialised equipment necessary to mine Litecoin? Do you have access to cheap electricity? Why do you want to mine Litecoin? What is it that has made you think of this?

The key question is do you think the price of Litecoin is going to continue upwards to make it worth while mining Litecoin at current prices? What if the prices decline?

 

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The downtrend is still in play for Litecoin though it could catch up with other 'Alt Coins' very soon. The problem is that 'Alt Coins' are following Bitcoin's lead and it could be that they cannot sustain Bitcoin's move and run out of buyers. 

There are two price point targets in the shorter term which are $70 and $86 which would take Litecoin above its 100 and 200 DMA's. Even then it would still be in a downtrend based on the 'daily' so Litecoin still represents a very high risk trade. 

 

Edited by TrendFollower

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Litecoin seems to be consolidating and showing more sideways action than other 'alt coins' on the 'daily'. 

It could be deciding whether to break upwards or break downwards depending on how Bitcoin et al decide in terms of which direction to take.

 

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This is a quote from Charlie Lee:

About it, Charlie Lee commented:

“I see it less about privacy and more about fungibility. In order for Bitcoin and Litecoin to be useful money, they have to be fungible. Whichever Bitcoin or Litecoin you spend should be equal to any other coin you have.”

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As good as Litecoin has been in the first half of 2019 it has been just as bad in the second half of 2019. It has literally given back all the gains.

Those traders who trade both 'long' and 'short' will have made money on the move upwards and then also made money by shorting on the move downwards. 

It is difficult to anticipate how Litecoin will do over the coming month but I think it is likely to take the lead from its father in Bitcoin. 

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Litecoin up 10% this evening. I get the feeling that traders will want to take significant profits from their 'shorts' prior to  the Christmas and New Year period. 

Litecoin and EOS (even more so) are leading the way in this revival today. How long it continues will be the question here. I am expecting this to potentially go into tomorrow depending on how 'Asia' reacts and responds overnight. 

This could well be a strong short covering rally that we are witnessing but there are still points to be had here for those short term 'opportunistic' traders who can smell a quick profit there for the taking. The great risk here is that this rally is short lived so ensure you have a robust exit plan should things move against you quickly. This is 'Crypto' after all!

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Litecoin is up over 4% at the moment and is the best performing Crypto available on IG at this moment in time. This could merely be a brief rally as traders close their shorts before Christmas and the New Year. 

I would want to see a move above $50.00 to take any upward move in Litecoin seriously.

Litecoin_20191222_18_35.png.bf5af34fd90304c288e234b76e199b60.png

A move for Litecoin above $50.00 would take it above is 50 DMA on the 'daily'. It would have meant it has also surpassed its 20 DMA prior to this. Anything other than that means trading Litecoin on the 'long' side is very high risk in my personal opinion. 

Litecoin_20191222_18_37.png.dfb9da605a56214a5653aca4d642ca8d.png

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I sense a mini rally in Litecoin which may well look to follow Bitcoin Cash's lead. I could be wrong but based on current price action then we may see a temporary rally in Crypto's including Litecoin. 

Litecoin is still one of the 'cheapest' Crypto's to trade (based on margins) on IG's platform.

Edited by TrendFollower

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So this morning Litecoin is leading the way in terms of positive and bullish price action for Crypto's available on IG's platform. 

It is possible that we see a mini spike towards $45.00. There could potentially be many short positions which are closed prior to or around the New Year and it is this closure of shorts which could lead Litecoin to rally towards this price level. This will also sucker in lots of retail traders thus making this move possible as other markets are open less than Crypto's over this Christmas and New Year period. 

These are just my thoughts at this moment in time which I am sharing and of course the price action could prove my thoughts wrong. 

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Litecoin hit $43.50 so it is edging closer to my price target of around $45.00 but it is clearly lagging behind Bitcoin Cash and Ether today. 

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Litecoin hit $49.90 and was a whisker away from crossing $50.00. I think If it can cross this price level then it will take it above its 100 DMA on the 'daily'. It has already crossed its 20, and 50 DMA's on the 'daily'.

$67.00 area prize zone will be the next target to see if Litecoin can cross its 200 DMA on the 'daily'. 

Litecoin_20200111_13_56.thumb.png.319a55683217a355849ec15d2fe6627b.png

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Have a look at the chart below 'daily' and the 'Money Flow Index' and you will notice that Litecoin is currently at overbought levels but the pattern of the 'red tip' is different on this occasion. This is a very bullish indicator and is a strong indicator of a strong trend emerging. 

Litecoin_20200115_19_09.thumb.png.d17b24f616fdef72f43b5816abf8f60f.png

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I think Litecoin is going to follow Bitcoin's lead on this current Crypto rally we are seeing. 

Litecoin requires less margin requirements on IG's platform to trade than Bitcoin so I do see some of the 'alt coins' like Litecoin being more attractive to smaller traders to trade. 

In fact I think Litecoin is the cheapest in terms of margin requirements to trade on IG out of all the Crypto's. 

 

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I read a report that Litecoin's network volume reached $100 billion on 2019.

This is still peanuts compared to network volumes for traditional payment methods  but it is still impressive for something which is supposed to be garbage and junk. 

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Litecoin has plenty of upside potential and for me it could easily rise to $100 if Bitcoin et al continue rising in the phenomenal rate in which they are right now. 

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The 'Parabolic SAR' is indicating bullishness in the price action for Litecoin as you can see from the chart below.

Litecoin_20200212_05_33.thumb.png.829b3cfe69584272c113a87fdd5acc73.png

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I have no doubt that Litecoin is going to have a real good go at $100 price area.

It seems it will face some resistance in the 90's but I think $100 looks like it is on the cards now. 

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It would not surprise me one bit if what we have witnessed is similar to a mini flash crash where Algo's in Asia and to be fair around the world have caused this sharp drop and then we see a quick sharp rise too!

Traders who lose awareness of the weekend probably don't know what the fuss was about on Monday morning, lol. 😀

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I did not quite get the Monday morning right but certainly Tuesday afternoon! That is how quick Cryptos can move and that is how small the margin of difference is in terms of timing and timescales.

I think any serious buying will take Litecoin into the 80's and 90's. 

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