/Litecoin (LTC)’s Symmetrical Rise And Fall And The Need To Keep It Simple

Litecoin (LTC)’s Symmetrical Rise And Fall And The Need To Keep It Simple

Litecoin (LTC)’s rise and fall symmetry highlights the importance of keeping things simple. It’s a principle that works best in all walks of life and trading is no exception. If we zoom out and look at the daily chart for LTC/USD, we can see that the price is now declining in the same manner that it rallied in. So, without using any fancy indicators or trend lines, we can tell right away what is going on and what is expected to happen next. All we need is patience and discipline to wait it out and let the trades come to us rather than chasing the price. It is so easy to lose perspective when we zoom in on the 5 min chart and seldom look at the big picture.

The need to keep it simple does not apply to Litecoin (LTC)’s daily chart alone. It also applies to keeping it simple about the assets you think have long term potential and the ones you think don’t. For instance, Litecoin (LTC) set out not to solve the double spending problem but to be a faster and cheaper alternative to Bitcoin (BTC). The purpose of Bitcoin (BTC) was never to create a faster or cheaper digital currency. If that were the purpose, Satoshi Nakamoto could have created something like Ripple (XRP). The sole purpose of Bitcoin (BTC) was to solve the double spending problem that Litecoin (LTC) and thousands of other useless coins have made worse. So, investing in Litecoin (LTC) in the future you can keep it simple by asking yourself simple questions like, “Would Litecoin (LTC) have a use case if Bitcoin (BTC) becomes cheaper and faster with future upgrades?”

In my opinion, most of these questions answer themselves which is why I think Litecoin (LTC) or similar cryptocurrencies are only short term investments. I do not think Litecoin (LTC) would go to zero or disappear but I do think it will become a forgotten cryptocurrency in time. This is not something I want or wish. I believe that many cryptocurrencies can coexist but they have to have a unique use case of their own. If they don’t have a unique use case then they risk losing their place in the market.

The daily chart for LTC/BTC shows that Litecoin (LTC) remains in a strong downtrend against Bitcoin (BTC). This trend is unlikely to change any time soon as the market is ready to begin another downtrend which would see altcoins falling a lot more aggressively compared to Bitcoin (BTC). Investors need not to think about when Litecoin (LTC) might recover against Bitcoin (BTC) but also about whether Litecoin (LTC) might recover against Bitcoin (BTC) again. This is a very serious concern if you think about the use case of Litecoin (LTC). I think we are very likely to see some serious cleansing in this market during the upcoming downtrend and I think investors will be even more cautious regarding which cryptocurrencies to buy for the next market cycle.

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