Anyone paying attention to crypto knows that BTC has been soaring against alt coins for most of the year. Many alts are near their yearly or all time lows versus BTC.
So when is the right time to get into alts?
LTC vs. BTC analysis
Looking at the daily chart of LTC vs BTC you can see price is currently testing the most recent bottom. Obviously if price holds here then we have a double bottom in that we may be able to trad off of. However, the ultimate lows are still a but further away at .007.
From a risk-reward perspective the trade really isn’t all that bad right here considering price was at .017 just a couple months ago.
Even if price went to the lows to stop you out, it would be only a .0015 loss compared to the possible upside of .009
That’s a 6 to 1 risk-reward ratio!!!
If you have ever read the book Money: Master the Game from Tony Robbins there was one of many themes found when he interviewed top money managers.
They looked for investments that offered 5 to 1 risk-reward scenarios and mainly stuck to that rule.
As for LTC against BTC it could certainly continue lower, especially considering BTC has its halving next year and LTC just completed its.
I’m just saying, from a pure trade perspective there is definitely solid arguments for getting long.