Big Litecoin & Ethereum Trading Opportunities

Litecoin & Ethereum have exploded in the past 12 - 24 hours, especially Litecoin. In this video, we'll discuss some possible trade ideas and how cautious you should be when investing in these volatile cryptocurrencies.

Litecoin is priced much higher on GDAX than other exchanges. Roughly 30% of volume is coming from GDAX at the moment, which makes me believe the price from GDAX is a premium which will close over time as has happened in the past. As such, I would not touch Litecoin on GDAX.

However, there might be an attractive opportunity to buy Litecoin at roughly 1.75m Satoshi (0.0175 BTC). This is a key long-term resistance turned into support now that we have broken above it and are hovering around it. A buy limit around this level with a subsequent stop roughly 20 - 30% below the market might be attractive given cryptocurrencies that explode tend to keep going up for an undetermined amount of time.

If we see Litecoin fall below this key level (0.0175 BTC) in next 24 hours and remain there, my view will become more bearish. I likely won't be participating in this trade, given I view cryptocurrencies risky enough as is, but I am considering a small position regardless.

Ethereum, on the otherhand, is still below its key resistance level (0.04 BTC) which means I still view it as undervalued despite its run-up in USD. Furthermore, it is priced similarly across all exchanges. If we can break up 0.04 BTC, I would look to start taking profits in the 0.055 - 0.06 BTC level, with the next level being 0.07 BTC. Anything beyond that I will provide a separate video update for.

As usual, I would love to hear your thoughts. Thank you for watching.