The fresh Bitcoin price swell above $5000 has resulted in the whole cryptocurrency market to follow in the footsteps of and revel in some of the gains from the price increase. However, in the course of this price increase, it has emerged that some cryptocurrencies traded against Bitcoin are trending with Bitcoin, for example, Litecoin, while others are not.
Within the past seven days, Litecoin has relished a price increase that mounts up to over 50%. On the other hand, in the very same period, cryptocurrencies including Ripple and Ethereum have experienced price increases that had resulted in only 16%-18% gains. This is mainly because LTC/BTC has been trading within a sturdy positive correlation toward Bitcoin, as seen in the chart below. LTC/BTC is detailed in orange.
Nevertheless, ETH/BTC and XRP/BTC have both equally experienced a counteractive correlation with Bitcoin. As Bitcoin rises, these two coins are dipping against Bitcoin as seen in the chart below. ETH/BTC is drawn in green, and XRP/BTC is detailed in purple.
Even Though XRP and ETH have revelled in price increases against the USD over the past few days, they have significantly suffered against Bitcoin which has seriously reduced their future price increases over the duration.
Litecoin has now seen an outstanding 145% price increase over the past 90 days as the coin currently trades for $93.80. The cryptocurrency is now rated 4th place on the top cryptocurrencies by market-cap value as it currently holds a $5.70 billion market cap value.
Looking at the LTC/USD 1-Day Chart:
Given that our last LTC/USD analysis, we can see the price surge has gone on as the coin has broken above our last resistance around $90 and is now aiming back towards $100.
From above: The closest level of resistance is found at $100. This amount of resistance is reinforced by the bearish.5 Fibonacci Retracement level, increasing the level of assumed supply at this level. Above $100, further resistance lies at $110, $119 and $125.
From below: The nearest level of support now lies at $90. If the sellers pressure the coin beneath $90, support lies at $81, $75 and $67.
The Stochastic RSI has demonstrated indications that the market is overbought, and a crossover might lead a potential pullback may be coming in the next couple of days.
The trading volume has begun to drop slightly back toward the March 2019 average level; it might be due to the weekend.
Looking at the LTC/BTC 1-Day Chart:
- Analyzing Litecoin price against Bitcoin, we can see the coin has continued to surge above the ascending price channel. The currency has now encountered resistance at our highlighted level around 0.01826 BTC where lies a 1.414 Fibonacci Extension level.
- From above: The closest level of resistance above 0.01826 BTC lies at 0.019, before reaching 0.01968 BTC which incorporates the 1.618 Fibonacci Extension level. Above this, further resistance area lies between 0.02 BTC and 0.0208 BTC.
- From below: The nearest level of support now lies at 0.01731 BTC. Beneath this, further support lies at 0.0161 BTC and 0.015 BTC.
- The Stochastic RSI has indicated that the market may be overextended as a cross over below has commenced. If the RSI starts to fall even further lower, we can then naturally expect the coin to drop.
- The trading volume has now also returned to the previous average level.
Cryptocurrency charts by TradingView.
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