As anybody in crypto knows, there are no easy trades.
Looking at big coins, the rapid up move caught many off-guard. Now, those who missed out are left wondering if they should “pay up” for the likes of Ethereum (ETH) and Litecoin (LTC). The quandary in these coins is enhanced by the fact Ethereum (ETH) and Litecoin (LTC) looked to be pinned right at resistance.
Let’s look at the charts carefully.
Ethereum (ETH) has met resistance right at its 50-day moving average near $128. That level is also a horizontal resistance level. The 50-day moving average seems important. Last year, Ethereum (ETH) started to go down after it failed at the 50-dma (Figure 1, red line). The obvious hope with Ethereum (ETH) is history does not repeat.
The next hope is that Ethereum (ETH) can get above a key Gann point at $136 (not shown). A move like that could trigger a big move up in the overall crypto market.
Litecoin (LTC) has some consolidation to do after its huge move up.
Litecoin (LTC) ran into big resistance vs. Bitcoin (BTC). The chart shown in Figure 2 implies one of two things. Either Litecoin (LTC) went too far vs. Bitcoin (BTC), or Bitcoin (BTC) is going to catch up by having its own 30 percent up move.
It may be important to remember a bit of Litecoin (LTC) history. In December of 2017, Litecoin (LTC) on Coinbase topped five days before Bitcoin (BTC). So if we are living a bottoming process, that could create hope that the rally in Litecoin (LTC) is a leading indicator of what could happen in Bitcoin (BTC) — and the rest of the crypto market.
Looking at Litecoin (LTC) on Coinbase, $43.67 seems to be the next key point to watch (Figure 3). On the upside, if Litecoin (LTC) can take out $46 over the next ten days, that could trigger a big rally.
Bottom Line: Resistance is holding back Ethereum (ETH) and Litecoin (LTC). FOMO has led people to chase up moves, and that never seems to work out. That said, Gann work hints that there’s nothing wrong with hope at this point. If Ethereum (ETH) and Litecoin (LTC) can hold up on a dip and eventually move through resistance during the next 10-14 days, a crypto bottom could be in. Conversely, caution is warranted. We all know what happens if crypto hope rallies fail badly.
There’s only one way to play these big coins: Follow the Crypto.IQ Trading Desk and their tactics on Ethereum (ETH) and Litecoin (LTC). They will add on their 200 percent% return whether it’s a breakout or a fakeout in Ethereum (ETH) and Litecoin (LTC).
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