If you you refer back to my posts on crypto you know I have set-out a consistent approach to trading these markets - LTC is no exception.
LTC is still a unique case however, with a majority of the market being under water on their equity, Hodl'ing has dominated this market. Hence, I refer back to the percentage of Realised Gains / Losses (the lower indicator) to understand whether market participants:
1) are taking advantage of rallies to Breakeven, or
2) continue to hold with an expectation of further gains.
I think it is clear that the 2nd scenario is what is actually happening and the probability of going to overall breakeven (the upper costs basis line) in the market has been a slow grind but a realistic target.
Some traders simply want to buy at the lows - but from my perspective there are some great opportunities to trade other markets, that I am happy to sit back and wait until I see evidence of the psychology I explained in this post and related posts to be tested and then as a trader - exploited!
LTC is still a unique case however, with a majority of the market being under water on their equity, Hodl'ing has dominated this market. Hence, I refer back to the percentage of Realised Gains / Losses (the lower indicator) to understand whether market participants:
1) are taking advantage of rallies to Breakeven, or
2) continue to hold with an expectation of further gains.
I think it is clear that the 2nd scenario is what is actually happening and the probability of going to overall breakeven (the upper costs basis line) in the market has been a slow grind but a realistic target.
Some traders simply want to buy at the lows - but from my perspective there are some great opportunities to trade other markets, that I am happy to sit back and wait until I see evidence of the psychology I explained in this post and related posts to be tested and then as a trader - exploited!
