Bitcoin vs Litecoin – A Race for the Crown

Overview:

Past performance does not always equal future results, however, when it comes to horses and stocks, there is no better place to have your money than on winners.  Litecoin is without a doubt the leader in cryptos right now, and the current breakout off a higher low is telling of the market is simply betting on Litecoin.

So why bet against the market?  Not that we have given up on Bitcoin, or have the belief that Litecoin will replace Bitcoin.  Bitcoin is still the leader or the space, but every once in a while someone challenges for the crown.  Litecoin is simply heads and tails above the market from a charting perspective.  

While many coins formed an extended leg down after peaking in February, Litecoin maintained its bullish structure.  We have now added an extended target on which we may hold out for in our current position trade around 75.0.  We want to let our thoroughbreds run and this is one is simply outperforming.

LTCUSD:

As Litecoin approaches our initial target area, other coins are still attempting to take out their previous highs.  This bodes well for the strength of Litecoin and it is very likely to hit our target.  It is clearly ahead of the pack and we can use it for an early barometer of a potential pullback, as we enter a wave 3 fractal cycle of the broader 5th wave.

Our final target was initially 57.50-62.00 however, there is an extended target area between 75.0 and 85.0.  What we will do is see how the market reacts when it enters the 57.50-62.0 target area before trimming out.    

If you noticed I also changed my count slightly.  Where the ii wave ends I originally had a B as part of the wave (4) correction.  First it really does not matter, we have a clear 3rd wave and we are likely in a 5th wave move.  The reasoning is this leg was very impulsive taking out the previous high, and wave 3’s are generally the more impulsive wave.  We should receive some confirmation in the next couple days where we can look for a long swing trade.

Consolidation here could see a pullback to the 48.5-51.0 area and this is where we can look for longs.  This would validate on a reversal signal our current wave count.  Though we expect some consolidation here, we can still move higher as the broader market attempts to catch up, but it appears Litecoin is a wave ahead.

ETHUSD:

Ethereum is not  showing anywhere near the same bullish structure, but and is still attempting to break the (b) leg of the correction let alone pushing to new highs.  This is not concerning yet, but it is something we need to watch for.  If the next impulse wave does not push into the 160’s, it would be a sign of weakness, and we may revisit our current position. 

Not sounding the alarm bell yet, but there is no doubt what coin is leading the way, and which is lagging.  Of course it could be a late bloomer so we will simply not jump to conclusions and see how the next swing reacts.

Bitcoin:

Bitcoin does not look as bullish as Litecoin, but in a much better position than Ethereum.  It is expected to see some consolidation here and taking out the 3900 area is still a key to maintain bullish momentum.   We may see a retest of the 3730 area, higher low formation and signal to go long.  Pushing through this level brings 3550-3650 back into play. 

Nothing really to do here but see if a long signal forms to go long,  or it takes out 3730 and this was a simple fake-out.  All in all this was a good move, but like antiques, books and stocks, good is never good enough.

Summary:

Really nothing to do here as the swing came out of nowhere and unless you were on psychic hotline, there was no way you were catching it.  If the move has legs there will be some trading opportunities in the near future. 

We are looking for bullish setups and if and when they form will send out a trade to our expert swing traders.  Nothing to do here but wait for a setup, we would rather miss a bullish swing than get in early only to get knocked out.

For those of you that like to trade stocks daily, we have opened up Dave’s Trading Room where he actively posts more aggressive trades.  For the next month or so it is free so make sure you check it out.

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