Outlook: Litecoin rallied again during the week ending January 3rd, moving up $10-15 before pulling back, giving back most of the gains to form a bearish looking inverted hammer. However, the tides turned at the tail end of this weekend as Bitcoin and Ethereum exploded to the upside, creating a tsunami that rose altcoins like Litecoin higher with the rising tide. 

(January 4, 2021  7:30PM EST)

Litecoin, one of the older and more well-known crypto altcoins, is starting to catch wind behind its sails as a new crypto bull market picks up steam and even institutional inflows buy up LTC in larger tranches through traditional financial products such as Grayscale's Litecoin Trust. While Litecoin's well behind Bitcoin and ETH in terms of name recognition or adoption, the project continues on, seeing a small percentage of real-world utility as well as on dark web markets. Gaining a Grayscale crypto fund was a huge success and validation for the project, as institutional investors have been asleep at the wheel with regards to crypto for years and are only now awakening weary-eyed looking for guidance and easy and compliant ways to gain exposure. 

Looking forward, LTC will look to hold onto the $150 level before continuing higher to target $200. If LTC pulls back, there should ample support between the $100 - $125 level.

Demand is high and only increasing, supply is fixed, limiting, and decreasing, and fiat currencies like the US dollar and Euro are being massively inflated. These three variables provide an extremely bullish macroeconomic environment for cryptos like LTC, all of which support more buying, less selling, and higher valuations for BTC going forward. If you're not bullish, you're wrong; it's that simple.

Support: There appears to be a small range of support around $125 where Litecoin consolidated for a couple of months before breaking out, indicating a higher low and probably a strong support level. This should be further supported by rising 50 and 200 Weekly EMAs, the former which has already printed a bullish divergence and is now heading for the $100 level.

Resistance: Look for resistance at the $150 level and then $200 which are large, round numbers, the former of which is the 2019 high and $200 not seen since February 2018. Once LTC breaks through $200, I think all bets are off; LTC is off to the previous ATH and then some.

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