Technical Analysis: Litecoin (LTC) - Feb 9th
Overnight, Litecoin broke above the upper resistance and currently bounced off a prior high however, it isn't immediately pulling back yet looks to be consolidating above the resistance. The past few days we have seen the price of Litecoin like many other cryptos be extremely stagnant and for Litecoin, test the upper resistance level multiple times a day. Is this the move that we have been waiting for that will end our current correction in the crypto markets? Gregory Manarino called earlier last week that there is a correlation between the stock market and crypto markets as money pulls out of the stock market, it will enter the crypto markets therefore pushing them higher. If the markets fall more, are we going to see the cryptos rise? Personally I agree with his theory but will continue to watch and wait for that impulse move up.
For a fact, crypto are gonna rise again. I just followed you, if you don't mind following back.
Thanks for your analysis.
Yes, the correlation with the stock markets is interesting. Most assets that are measured in USD will be dragged down by massive selloffs of other assets. We saw this last week and early this week when investors sold stocks and technically bought USD. So USD gained and most assets valued in dollars depreciated (like crypto, stocks, CFDs, currencies, etc).
But I agree that longterm, if the stockmarket continues down, investors need to put their USD into other instruments. Normally they go for safe ones like gold and treasury bills, but many will hopefully put some in crypto as well.
And that can have an additional long term effect that more investors will have coins in their longterm portfolios:)