Litecoin has a strong correlation to BTC, what is not very surprising.
But in difference to BTC the crash hasn´t be so extreme. And the spread between BTC and LTC is still growing.
Nevertheless, every time when BTC is falling, LTC is doing as well - and vice versa.
Since january 06 LTC is within a negative trend channel which has been broken only once during the second "dip".
Within this channel it tumbles between the two limits.
At the moment the course is just below a resistance line (fib retracement at 78.6%) and the last trend (pointed line) is heading to the crossing point of resistance + trend + top of channel.
If LTC breaks out at this point that would be a very positive sign (it must stay outside several hours of course for confirmation).
As indicators show weakness I don´t expect this in short term but perhaps till tomorrow.
buy / accumulate above 190$; target 225$ - 2. target 281$
stop below 154$ (swingline from dec 09)
But in difference to BTC the crash hasn´t be so extreme. And the spread between BTC and LTC is still growing.
Nevertheless, every time when BTC is falling, LTC is doing as well - and vice versa.
Since january 06 LTC is within a negative trend channel which has been broken only once during the second "dip".
Within this channel it tumbles between the two limits.
At the moment the course is just below a resistance line (fib retracement at 78.6%) and the last trend (pointed line) is heading to the crossing point of resistance + trend + top of channel.
If LTC breaks out at this point that would be a very positive sign (it must stay outside several hours of course for confirmation).
As indicators show weakness I don´t expect this in short term but perhaps till tomorrow.
buy / accumulate above 190$; target 225$ - 2. target 281$
stop below 154$ (swingline from dec 09)