The recent Bitcoin price surge above $5000 has caused the rest of the cryptocurrency market to follow suit and enjoy some of the benefits from the price increase. However, during this price increase, it has become apparent that some cryptocurrencies traded against Bitcoin are trending with Bitcoin, such as Litecoin, while others are not.
Over the past seven days, Litecoin has enjoyed a price increase that totals over 50%. On the other hand, in the same period, cryptocurrencies such as Ripple and Ethereum have seen price increases that had resulted in only 16%-18% gains. This is mainly because LTC/BTC has been trading within a robust positive correlation toward Bitcoin, as seen in the chart below. LTC/BTC is outlined in orange.
However, ETH/BTC and XRP/BTC have both experienced a negative correlation with Bitcoin. As Bitcoin rises, these two coins are falling against Bitcoin as seen in the chart below. ETH/BTC is drawn in green, and XRP/BTC is outlined in purple.
Although XRP and ETH have enjoyed price increases against the USD over the past week, they have significantly suffered against Bitcoin which has dramatically reduced their potential price increases over the period.
Litecoin has now seen an impressive 145% price increase over the past 90 days as the coin currently trades for $93.80. The cryptocurrency is now ranked in 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:
- Since our previous LTC/USD analysis, we can see the price surge has continued as the coin has broken above our last resistance around $90 and is now aiming back toward $100.
- From above: The nearest level of resistance lies at $100. This level of resistance is strengthened by the bearish .5 Fibonacci Retracement level, increasing the level of expected 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 push the coin beneath $90, support lies at $81, $75 and $67.
- The Stochastic RSI has shown indications that the market is overbought, and a crossover could lead a potential pullback may be coming in the next few days.
- The trading volume has started 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 reached resistance at our highlighted level around 0.01826 BTC where lies a 1.414 Fibonacci Extension level.
- From above: The nearest level of resistance above 0.01826 BTC lies at 0.019, before reaching 0.01968 BTC which contains 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 suggested that the market may be overextended as a cross over below has started to take place. If the RSI starts to fall further lower, we can expect the coin to drop.
- The trading volume has also returned to the average level.
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Cryptocurrency charts by TradingView.
Source: Crypto Potato