View Bitcoin could fall back to $5,000 in the next few days, as litecoin - which guided markets higher in the first quarter - is showing signs of weakness.
Bitcoin could be in for a sudden price pullback, as litecoin, which doubled in value in the first quarter and led the crypto markets higher, is now showing signs of weakness.
BTC, the leading cryptocurrency by market capitalization, hit a five-month high of $5,627 yesterday and is currently trading at $5,450 on Bitstamp, representing a 1 percent drop on a 24-hour basis.
If there is indeed a correlation between price trends of the two cryptocurrencies, litecoin's bearish divergence is bad news for BTC, as seen in the chart below.
Further, BTC charted a bullish higher low near $3,300 in the first week of February, confirming seller exhaustion.
Litecoin also bottomed out at $22 in mid-December, but charted a bullish higher low near $29 on Jan. 22 - two weeks before BTC did the same.
LTC appears to have led bitcoin higher in the first 3.5-months of the year and its recent weakness, as discussed above, might end up dragging BTC lower.
BTC risks falling back to $5,000 over the next few days, and the bullish higher high established yesterday with a close above $5,466 may fail to yield an immediate rally to $6,000.
Daily chart: Focus on RSI. The RSI will end up confirming a lower high if BTC ends in the red today.
The resulting bearish divergence - a higher high on price and lower high on the RSI - would further strengthen the case for a correction.
Litecoin Led Bitcoin's Price Rally, Now It's Hinting at a Pullback
gepubliceerd op Apr 24, 2019
by Coindesk | gepubliceerd op Coinage
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