Every time LTCD dips into lower price levels there is always a pool of liquidity, in the form of buy orders, to absorb the impact of the plunge. With every descent into lower price levels, there is more BTC being brought into the market than there is being pulled out.

In addition to this, sell resistance has remained low within the 100 Satoshi  to 300 Satoshi range – which indicates that it is only a matter of time before the floodgates give way and the price really begins to surge upwards back into the 1000 Satoshi region.

Remember my previous post in which I described the process of accumulation? Well, with each plunge, skilled traders are strengthening their position and stocking up their warehouses in preparation for a much larger move.

But don’t be fooled.

Accumulation doesn’t last forever.

Once the jittery novice traders have been shaken out of the market and there is no one left to fill those strategically placed lowball buy orders – you will see a hoard of traders pulling their low bids and entering the market via the sell side, pushing the price higher which will mark the end of accumulation and the commencing of the Distribution phase.