Looking like ltc set to underperform bitcoin in near-term
Updated
Litecoin passed a key level on the 
LTCUSD chart earlier today at $48.31. This level acted as support numerous times on the weekly chart and came into play as resistance numerous times. After a number of tests, price broke above but has since slowed its increase.
Litecoin outperformed bitcoin on this move to bring it to new highs against bitcoin. The increase has since slowed and bitcoin is trading near support making me believe the odds are in favour of bitcoin outperforming litecoin in the near term.
This combined with a bearish divergence forming on the litcoin versus bitcoin 4-hour chart is enough reason for me to take a short position on ltc against btc. I am keeping the stop fairly tight here as I do not want to risk litecoin moving away quickly to the upside especially if it increases past 0.013 and near a new high. The entry for the position was 0.01294 with a stop loss of 0.0135 and a profit target of 0.01255. 0.01252 is the first trouble area where I would expect support to come into play so I will leave the profit target slightly above.
LTCUSD chart earlier today at $48.31. This level acted as support numerous times on the weekly chart and came into play as resistance numerous times. After a number of tests, price broke above but has since slowed its increase.Litecoin outperformed bitcoin on this move to bring it to new highs against bitcoin. The increase has since slowed and bitcoin is trading near support making me believe the odds are in favour of bitcoin outperforming litecoin in the near term.
This combined with a bearish divergence forming on the litcoin versus bitcoin 4-hour chart is enough reason for me to take a short position on ltc against btc. I am keeping the stop fairly tight here as I do not want to risk litecoin moving away quickly to the upside especially if it increases past 0.013 and near a new high. The entry for the position was 0.01294 with a stop loss of 0.0135 and a profit target of 0.01255. 0.01252 is the first trouble area where I would expect support to come into play so I will leave the profit target slightly above.
Trade closed: target reached
Trade reached profit target this morning It initially found buyer liquidity as it approached the profit target. However, this followed up with another wave of selling that reached the profit target and brought the price below the support level at 0.01252 which may now act as resistance and is a potential place to consider shorts depending on other market conditions.
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