The setup didn't pan out as I had hoped but I'm still holding the position. I think LTC will probably follow BTC during the upcoming bull market (as it did in 2013) so it will pay to have strategic positions in each. One should be cautious playing with LTC as it's a smaller market and therefore more volatile and prone to slippage.
The recent rally in BTC is fundamentally different than those that came before it in that it jumped the resistance between $260-80 very decisively and quickly on strong volume, with a large jump in price in a very short time (compare the length of the big 3d green candle to previous ones).
After a long, excruciating trading range where price has held resilience and various informed interests have taken position, this is a huge sign of strength and an indication that the market is ready to move up and begin to correct and recapture some of the lost gains from the year long bear market.
The recent rally in BTC is fundamentally different than those that came before it in that it jumped the resistance between $260-80 very decisively and quickly on strong volume, with a large jump in price in a very short time (compare the length of the big 3d green candle to previous ones).
After a long, excruciating trading range where price has held resilience and various informed interests have taken position, this is a huge sign of strength and an indication that the market is ready to move up and begin to correct and recapture some of the lost gains from the year long bear market.
Well, you might still be right about LTC, though I'm on the sidelines there until I can see something I can hook into. Can't really get a feel which way it's going right now.
Regarding BTC, I'm bullish.
What keeps me up at night is whether the initial LTC run to $8 was just the first leg in a larger trend or not. If that happens and the bull market gets roaring I wouldn't be surprised to see LTC mirroring some of BTC's early gains.
-----
Just remember that it's supply and demand that controls larger market cycles and not much else. Once the available supply runs low and begins to stall the downtrend, it is a signal for savvy investors to accumulate quietly, keeping the price low. Once it's gone, the price moves up easily as there's nothing to stand in the way (it has been absorbed).
On Wall Street there are hedge funds, pension funds, insurance companies and other trading syndicates that actively plan and meticulously carry out campaigns to accumulate and distribute stock. They will not inform the general investing public of their plans until the bull market is well underway and they are looking to sell. Then the stock is "hot" and all of their useful idiot friends in the media will gladly help them find buyers. The fat cats in charge of large swaths of wealth did not get rich by trading a $10,000 Forex starter account--they are aligned with syndicates and deploy said wealth very strategic ways in order to corner markets and move supply and demand in their favor.
Who knows who has been actively accumulating Bitcoin, but they are there. Bullwhale and his fat sack of coins he likes padding the orderbooks with is just one example. If they have invested time and money into this venture, it's feasible to think they would plan to sell at higher prices than $300.
