Potentially Huge Litecoin Breakdown - Good Risk to Reward Short
Updated
Usually, I wouldn't consider shorting when RSI is practically oversold on every timeframe. However, on the back todays negative LitePay news and the lack of major support until $107-106 once $137 is broken; this could be a great risk to reward short. I expect bounces to be fairly weak if recent sentiment is any indicator. And while I do think stop losses are a good idea I would make sure I'd give my stop loss enough space just in case so that I don't get stopped out from bounces or sideways chop.
Don't get me wrong, $137 is going to be a strong resistance; however if Bitcoin continues to show weakness, Litecoin will be pulled down as well. And given that the price is currently $138, the probability that LTC will break that resistance on the next Bitcoin dump is significant.
Don't get me wrong, $137 is going to be a strong resistance; however if Bitcoin continues to show weakness, Litecoin will be pulled down as well. And given that the price is currently $138, the probability that LTC will break that resistance on the next Bitcoin dump is significant.
Trade active
Recommend start scaling out of your short between $126.50 to $118.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.