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- Tailspin seems to be finished but the volatility is still high.
- "… the alt-coin correction index seems to suggest that this latest downdraft is actually a tactically positive signal for alt coins," Tom Lee. [19659003] Litecoin was recently traded close to $ 70.00 after the Bulls put in place a recovery supported by the recovery in August. However, the bullish trend was taken by surprise in mid-week decline. Bears ruminated bulls as investors sold the news that Goldman Sachs did not open a crypt. By the way, the news turned out to be FUD but the damage had already been done.
The crypt rolled like a stone in the air, starting from the maximum monthly to about $ 69.50. The declines extended below $ 62 and $ 60 support and reached a pit stop of $ 54.00. Tailspin seems to be over but the volatility is still high. LTC / USD recovered to test a resistance of $ 58.00, but they were corrected again. The support set at $ 55.00 is strong enough to withstand weekend trading, but the strongest support at $ 54.00 will be valid if the upward trend is reversed.
The simple moving average of 100 is preventing gains as initial resistance at $ 56.56 while the 50 SMA on the same chart is an obstacle to $ 57.00. Maximum resistance is $ 60.00 in the medium term but the bulls are ready for a battle to renew the trend towards $ 70.00.
Thomas Lee, the co-founder of the research firm Fundstrat, published the results of what the company calls "altcoin correction index." This tool measures the percentage of altcoins that have lost 70% of their value from the historical maximum in 9 months. The research tool showed that 97% of these altcoins decreased by 70% compared to the historical maximum.
"CRYPTO: 2 / Back in 2014, when this figure reached 87% (maximum historical then, and there were 349 tokens with actual trading volume then), this was followed within 1 week by a Alt-coin mini rally Alts saw a gain of 2.7X (almost a triple) in 7 weeks, "wrote Thomas Lee on Twitter.
Lee added:
"While we recommend sticking to #BTC (etc.), the alt-currency correction index seems to suggest that this last downdraft is actually a tactically positive signal for coins. "
LTC / USD Chart 15 & # 39;
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