LTCBTC Bats and dips
Updated
tldr: Bearish divergence, RSI could be under compression through March.
Bullish for long-term, but as BTC rallies through spring LTC may rise a bit slower.
The latest highs can be overlaid with a bearish bat inside of a bullish bat, for what that's worth. I expect the green channel to be dropped and later revisited.
Litecoin has been an interesting coin to follow across the last year+, from Charlie Lee's spicy tweets to the development of new faster ASICs to the first atomic swap exchanges being performed. It was a year of promising productivity for LTC while most altcoins just brought promises.
The altcoin bloodbath of Q4 2017 laid this coin quite low, down to around 0.0053 BTC as fervor and hype drew overeager new money into the lofty heights of BTC by name/brand recognition. The following ascent *may* have been related to the perceived benefit of newcomers in purchasing "whole coins" at a lower USD price, especially on Coinbase in the U.S.
What has followed during early 2018 is a seeming lock-step stability for LTCBTC (compared to the end of 2017) with some fluctuations which seemed to reflect the news cycles rather than market cycles. Litepay will be a leg up for LTC but the biggest factor for me has been the consistent performance of LTC as an actual means of exchange (mostly from one exchange to another). While BTC mempool got clogged and transaction fees soared, while cryptokitties brought the mighty ETH to a similar- though less dire- situation, LTC transmissions were clean, cheap, and quick.
When Charlie Lee divested his LTC to "focus on the work" I got nervous, but from an objective perspective it does make some sense to avoid a conflict of interests and could potentially remove a psychological barrier for buyers who would do due diligence and see that his work on LTC might be corrupted for his own LTC holdings and gains. The Litecoin foundation provides a central support for this decentralized network and the fact that multiple companies produce ASICs for this algorithm make the future outlook resolutely bullish, but with less upside than BTC itself in the very long-term (10 year) because of its nature as a younger brother/ testing grounds for network innovation leading to BTC implementation. The focus of development is on efficiency and transactions rather than building a dAPP ecosystem like so many other alts are trying to do. The supply of coins being 4x that of BTC means that it should theoretically be worth up to 0.25 BTC at a maximum, which is a long way off. The green channel hits this line in 2020.
Bullish for long-term, but as BTC rallies through spring LTC may rise a bit slower.
The latest highs can be overlaid with a bearish bat inside of a bullish bat, for what that's worth. I expect the green channel to be dropped and later revisited.
Litecoin has been an interesting coin to follow across the last year+, from Charlie Lee's spicy tweets to the development of new faster ASICs to the first atomic swap exchanges being performed. It was a year of promising productivity for LTC while most altcoins just brought promises.
The altcoin bloodbath of Q4 2017 laid this coin quite low, down to around 0.0053 BTC as fervor and hype drew overeager new money into the lofty heights of BTC by name/brand recognition. The following ascent *may* have been related to the perceived benefit of newcomers in purchasing "whole coins" at a lower USD price, especially on Coinbase in the U.S.
What has followed during early 2018 is a seeming lock-step stability for LTCBTC (compared to the end of 2017) with some fluctuations which seemed to reflect the news cycles rather than market cycles. Litepay will be a leg up for LTC but the biggest factor for me has been the consistent performance of LTC as an actual means of exchange (mostly from one exchange to another). While BTC mempool got clogged and transaction fees soared, while cryptokitties brought the mighty ETH to a similar- though less dire- situation, LTC transmissions were clean, cheap, and quick.
When Charlie Lee divested his LTC to "focus on the work" I got nervous, but from an objective perspective it does make some sense to avoid a conflict of interests and could potentially remove a psychological barrier for buyers who would do due diligence and see that his work on LTC might be corrupted for his own LTC holdings and gains. The Litecoin foundation provides a central support for this decentralized network and the fact that multiple companies produce ASICs for this algorithm make the future outlook resolutely bullish, but with less upside than BTC itself in the very long-term (10 year) because of its nature as a younger brother/ testing grounds for network innovation leading to BTC implementation. The focus of development is on efficiency and transactions rather than building a dAPP ecosystem like so many other alts are trying to do. The supply of coins being 4x that of BTC means that it should theoretically be worth up to 0.25 BTC at a maximum, which is a long way off. The green channel hits this line in 2020.
Note
IGNORE RSI STRATEGY BELOW, PARAMETERS ARE FROM A DIFFERENT CHART
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