Litecoin is up almost 300% in four days. Why?
Some say Litecoin is undervalued vs Bitcoin. Litecoin is a Bitcoin fork that will often integrate new features before Bitcoin. It is joked that Litecoin is Bitcoin’s testbed. Maybe the run is because Charlie Lee, the founder of Litecoin, was on CNBC. Or some people see Litecoin as silver to Bitcoin’s gold.
While Litecoin is comparatively cheap and fast vs Bitcoin (especially when transaction volume on Bitcoin is high) the biggest factor in my opinion is Litecoin is one of the three coins listed on Coinbase (BTC, ETH, LTC). Coinbase is the largest exchange in the US. With that limited exposure it’s natural the lowest priced asset catches a bid, especially in this frothy environment. Coinbase was adding 100,000 new users a day in November. This new money can buy one of the three coins they list: Bitcoin, Ethereum and Litecoin. They are buying to be in the market, they are not buying based on an astute evaluation of the nuanced differences between Coinbase’s offerings.
Given those choices many pass on Bitcoin due to price. Ethereum has been in the news with network problems and is over $400. Litecoin looked cheap at $60 last week.
This youtuber sold his house to buy Litecoin when it was ~$4. Congrats to this guy.
In the meantime Bitcoin has stalled around $17,000. Bitcoin is carrying the biggest market cap, is on the news daily, is listed on the CME and it’s weekly chart is vertical.
If Bitcoin falters expect the market to follow. Crypto has had extreme gains in Q4, even by Crypto standards. When the pundits talk Crypto non stop you know the price action is unsustainable.
I am not calling a top (yet). I don’t think you can, but this price action raises a flag to me. Is Bitcoin accumulating for the next push or in distribution for a sell off? I have charted predictions from 17k to 48k in this current move. We’re in unknown territory. We are in the early stages of a tremendous shift but there will be violent swings.
Here’s what I do know. A coin on Coinbase has a big leg up in Crypto. In the near future (possibly by Jan 1st) Coinbase is adding more coins to its offering. I expect rapid price appreciation for these coins. One of those coins will Bitcoin Cash. Along with opening trading Coinbase will be granting access to Bitcoin Cash to any user who had Bitcoin on Coinbase during the fork on August 1st. Many may sell, but I think there will be more buyers than sellers. Get ahead of that event if you can.
I don’t think you are correct that Coinbase is adding the ability to buy Bitcoin Cash. They will only allow you to withdraw it starting Jan 1.
From the Coinbase FAQ:
Would I be able to buy/sell Bitcoin Cash on Coinbase?
For now, Coinbase plans on supporting bitcoin cash withdrawals. If this changes, we will notify all customers with an update e-mail.
When will I be able to withdraw Bitcoin Cash from Coinbase?
January 1, 2018
I have good reason to believe otherwise.
Might Monero be listed ?
FluffyPony was at Coinbase HQ last year but I doubt XMR makes it onto Coinbase. Never say never.
The best possible news for Monero would be a compatible hardware wallet. It takes a lot of resources to store Monero securely now.
Surely, this is your win/win space?
Coinbase has halted ETH and LTC trading either due to volume or lack of liquidity.
They also halted LTC withdrawals.
https://www.coindesk.com/coinbase-halts-litecoin-ether-trades-prices-spike/
I hope LTC is still up this much when my purchase clears on Saturday…
If I recall correctly, in a previous thread, you said that once BCH broke through $1,700, it’s a straight shot to $2,100.
Well, you are looking prescient again.
There’s a pattern developing…
Thanks metalleg.
I do a lot of TA for target and price predictions. Some of it is on my Youtube channel.
If I post a target it’s based on TA.
I recently called the interim top at $13,500 to within a couple hundred dollars.