The Litecoin market rallied ever so slightly on Wednesday as we are sitting in an area that looks like it is trying to form a bottoming pattern, sitting near the $110 level. Underneath there, we have the $100 level that should offer a significant amount of support, but ultimately this is a situation where we are going to continue to see a lot of back-and-forth, which is exactly what you need to see in order to turn things around.
The $100 level is a large, round, psychologically significant figure, and that will attract a certain amount of attention to begin with. As long as we can stay above the $100 level, I believe that this market has a chance of bouncing a bit. Having said that, the Litecoin market continues to see a lot of hesitation and it will need to see some type of move to the upside from Bitcoin. That being said, Bitcoin is trying to stabilize a bit, and it is likely that we will see a lot of reactionary behavior in this market when it comes down to what happens with the big coins.
If we do break down below the $100 level, then it would be a very likely that the market would flush even further, perhaps sending the market down towards the $75 level underneath. This is a market that I think will continue to see a lot of volatility, but I do think that we are getting closer to the end of the selling, which would be interesting to see due to the fact that the Federal Reserve will also have its part to play. After all, the monetary tightening cycle is what a lot of people are concerned about, and it has put an absolute beating on anything close to being thought of as a risk asset. This has not only driven down the value of Bitcoin, but it has also taken out almost everything. That being said, the market will move based purely upon monetary policy in the short term, so if we can get people to finally start freaking out about monetary policy, then it is possible that we could see a recovery. Longer term, I still like Litecoin, but we may have a little bit of time to kill.