Litecoin HUGE Buy Opportunity Following BTC China Exchange Closure


READ THIS: I forgot to include in the video the exchange volumes for Bitcoin (https://coinmarketcap.com/currencies/bitcoin/#markets) and Litecoin (https://coinmarketcap.com/currencies/litecoin/#markets). Click the links given to see % volume attributed to each exchange. You’ll notice there is significantly more Chinese volume for Litecoin, hence more downside risk. Even with this, I still like Litecoin on the lower end of the $40 – 45 range.

As many of you likely know, BTCC (one of the largest exchanges in China) has decided to cease trading for Chinese customers beginning September 30th. This has sent the cryptocurrency market into a downward spiral, causing panic and also great opportunities. However, at this point, I recommend holding off on buying as there is too much headline risk currently. Given the rumors for ICO bans turned out to be true and now rumors for cryptocurrency exchanges being true, I suspect the other exchanges (Huobi & Okcoin) have a good chance of closing too. As such, I think we’re in for just the beginning of headlines.

However, I do see a potential buy opportunity cropping up for Litecoin. Litecoin was one of the few cryptocurrencies that barely moved through the bulk of July and August, sitting between $40 – 45. While other cryptocurrencies skyrocketed, such as Bitcoin’s move from $2,700 to $4,000, Litecoin traded flat. It later exploded up to $90, before the whole cryptocurrency market began to correct.

At this point, Litecoin is well on its way back to that $40 – 45 range again while Bitcoin is still 30% higher than it was before August. At the time of writing this, Litecoin is currently worth $51.50. It’s gone down all the way to $47 at one point during this crash. Currently I have a limit order in at the $41 – 42 range. The risks? Over 40% of Litecoin volume is in China while it is only 10 – 15% for Bitcoin. Hence, it is much more impacted by the Chinese markets. I still consider it a good buy on the lower end of the range. As always, be cautious and use your own due diligence and judgment to make investment decisions.

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Post Author: CoinCryptoNews