Trying the Long Side on Litecoin after this Retrace in Cryptocurrencies
Now is still Sunday, but you know that brokers are open on Sundays for cryptocurrencies, right? So, we decided to open a long position in one of those currencies; we bought Litecoin Mini, as you might have noticed by the message on your mobile if you are a premium member.
As we mentioned on Friday, cryptocurrencies rallied strongly in the last couple of days of the forex trading week. The cryptocurrency market is open on weekends too, so the climb continued further yesterday and in the first half of today.
Litecoin Mini also climbed, but as Bitcoin started to reverse so did the crypto market. Digital currencies have retraced lower in the afternoon and Litecoin has retraced as well.
There are two doji candlesticks on this chart, which signal a reverse higher
Although, on the hourly chart, Litecoin seems as it has completed the retrace. Stochastic is oversold and the price is sitting right on the 50 SMA (yellow). This moving average has acted as support before and looks like it is doing the same now.
So, we decided to go long right here. Other cryptocurrencies such as Bitcoin and Ethereum have completed the retrace as well, which means that the whole crypto market is likely to turn higher now and resume the uptrend.
By the way, I'm already long with two positions from further below with my cryptocurrency broker, hence the green lines.
There’s some decent support further below if the slide extends
There’s a support/resistance level at around the 60 level on the H4 chart, where we can find the 20 SMA. So, there`s a possibility that the retrace might extend down there. Although, we placed stop loss way below there to give this trade some breathing room.
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