LTCUSD is trending higher and moving above an ascending trend line on its 1-hour time frame. Price is in the middle of a correction and could find bullish pressure at this rising support zone.
Applying the Fibonacci retracement tool on the latest swing low and high shows that the 61.8% level is closest to the trend line and might already be keeping losses in check. This is also close to the 200 SMA dynamic inflection point, which also held as support.
The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. The gap is also widening to reflect strengthening bullish momentum.
However, stochastic is on the move down to show that there’s some selling pressure left. This oscillator is nearing oversold levels to signal a potential return in bullish momentum. RSI is also on the move up so LTCUSD could follow suit.
Cryptocurrencies took hits after Bill Gates and Warren Buffet had some negative remarks on bitcoin, even comparing it to “rat poison” and reiterating that its value comes merely from speculation. “When you’re buying nonproductive assets, all you’re counting on is the next person is going to pay you more because they’re even more excited about another next person coming along,” Buffet said.
Still, confidence in the industry could remain intact as a good number of financial institutions and hedge funds are placing more bets in altcoins and startups in the space. Recall that Soros Fund Management and Goldman Sachs have recently made moves to invest in cryptocurrencies, which suggests a shift in understanding among the top players in the industry.
Apart from that, regulation has been a bit more friendly and open-minded, possibly spurred by IMF head Lagarde’s calls to do so. US regulators have a meeting coming up to decide on how to treat ethereum, though, so their remarks could still carry some weight in other altcoins like litecoin.
