Bitcoin is in the spotlight today, as traders and holders alike keep a close eye on China to find out whether or not there is any truth in the reported freezing of the nation’s exchange’s bank accounts. Whichever way it goes, the incident will almost certainly send ripples through the altcoin world.
With this in mind, what are the levels to watch in the LTCUSD? First, let’s take a look at the recent action in the pair. Much akin to its more valuable counterpart, litecoin lost value heading into the weekend. The pair recovered throughout Monday’s trading however, and broke out of an intraday range at Tuesday’s open to reach the highest level seen in the pair since April 2. The fresh highs offer up an intraday bullish technical bias, with previous key levels from the end of March/beginning of February offering up the day’s potential targets.
The recent sharp gains will likely correct in the short term, so expect a small pullback towards in term support at 12.3338. A failed retest of this level (i.e. the LTCUSD failing to close below it) would strengthen the upside bias and offer up the pair’s current level as an initial target. Two key levels lie beyond that, so if the bulls remain in control look for a secondary break towards Monthly highs at 13.0566. A break, and close, above this level would present an intraday tertiary target of March resistance at 13.4419.
As with the BTCUSD today, it is important to recognize that any fresh news out of China that either confirms or compounds the potential of an account freeze could quickly reverse the bullish technical bias. Furthermore, as is generally the case with silver and gold, altcoins will probably react quicker and sharper to any such news. Bear this in mind when placing stops; as ever, the key to success when trading volatile markets is strict risk management.
To contact the reporter of this story; Samuel Rae at Samuel@forexminute.com