Litecoin Price Analysis: LTC/USD Dips Remain Supported
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Bitcoin trading might be back to China; Warren Buffett fearing the bubble, and more. How has the market responded?
Every investment and trading move involves risk, you should conduct your own research when making a decision. A bullish rumor doing the rounds was that the Chinese ban on bitcoin trading is likely to be lifted. However, a parting message by Huobi poured cold water on the expectations.
As a result, Bitcoin prices are correcting from their highs. While Warren BuffettJamie Dimonand a few others are warning of a bubble in Bitcoin, the legendary investor Bill Miller is smiling away to the bank. Elsewhere, a few central banks are trying to stifle the use of Bitcoin by banning it. Nevertheless, the beauty of cryptocurrencies is that they are not controlled by anyone.
The market shall decide the value. Though the ban might make it difficult to use Bitcoin in the marketplace, it is unlikely to affect trading activity. Bitcoin has rebounded sharply from the trendline support and is attempting to breakout of the ascending channel.
On Sunday, the cryptocurrency broke above the resistance line of the ascending channel, but could not sustain it. If the cryptocurrency fails to breakout and sustain above the resistance line of the ascending channel, it can again fall to the trendline support. Ethereum continues to trade in a range. On the other hand, if the digital currency fails to break out of the range, a fall to the trendline is likely.
Ethereum will become negative if it breaks down and sustains below the trendline. Bitcoin Cash broke out of the range on October 28 and has been sustaining above it since then. This is a bullish sign. We shall wait for a small consolidation to re-establish the positions. Ripple has still not triggered our buy levels. It continues to trade in a tight range. The longer it trades in this range, the farther it will run when it starts a new uptrend or downtrend.
The stop loss on the remaining position should be trailed higher. If the breakout fails to sustain, ripple is likely to remain range bound for a few more days.
Therefore, our buy levels from the previous analysis have still not triggered. Litecoin continues to consolidate near the upper end of the range, therefore, we are modifying our previous buy recommendation. Therefore, we recommend a buy, only on a breakout.
