Technical analysis: LTC price correlation with BTC
In today’s analysis, let’s have a look at both giants LTC and BTC. As we can see on the chart, the price of both these cryptocurrencies correlates, meaning both have broken the upper part of their previous triangles and now formed another one on a bit higher levels.
Current Litecoin price on a chart (TradingView)
Obviously, Litecoin did not manage to break out the current triangle during its 3rd retest even though the morning in central European time looked promising for this movement. The price just has to gather more power for such a breakout, which could be cumulated by a positive fundament on another cryptocurrency like Bitcoin.
Potential we could see as well a downwards movement out of the triangle, but it all depends on Bitcoin that is ruling the direction and depth of any price movement.
Current Bitcoin Price on a chart (TradingView)
The charts looks pretty similar right, but note a few facts. The top of the current triangles formed on different dates.
The local top on Litecoin formed on 20th February, but on Bitcoin it happened around the 14th of March, meaning in Bitcoin did its new all-time high in the meantime, but Litecoin not, or not yet?
Perhaps it means altcoins have a month of delay and we see a new local high on Litecoin shortly (the ATH is almost 400 USD from 2018) – this would mean the new high on Litecoin will come in the next 2 weeks.
Altcoins loosing pace with Bitcoin
The other option is that altcoins and especially LTC is losing their pace with Bitcoin or in other words, the market is not interested in buys. Technically, we can see correlations on the price of BTC, LTC, and potentially other cryptocurrencies, but the levels, highs, and lows are and will be simply different.
Nevertheless, which option is more probable or even we will see a combination of them, the first movement is usually on Bitcoin!