Litecoin acted as a leading indicator for the market leader Bitcoin yesterday.
Litecoin surged over 10% during the hourly candle which spanned from 12:00 to 13:00 UTC and bitcoin followed up with its own increase on the hourly candle after from 13:00 UTC.
It seems to be struggling to break from its current consolidation and analysts have mixed opinions on price prospects from here.
However, Litecoin has been recording more bullish movements on its longer weekly timeframe. Price has been overcoming key resistance levels and forming a series of higher highs and higher lows.
The weekly MACD and RSI have also both been increasing. Both are commonly used as a gauge of buyer momentum.
Whether this can be used to gauge the direction of the overall market however remains questionable.
While Litecoin has acted as a leading indicator for short-term movements in Bitcoin numerous times over the past month, Bitcoin typically acts as the leader when it comes to longer-term movements.
Today’s price action is following up with another increase.
Yesterday’s price increase resulted in price moving above an expected resistance level at $48.31 which the point where price broke down in November.
Price has continued to increase today to the near where price broke down in November at $57.49.
Price reversed as it approached this point with sellers likely anticipating resistance at this point.
Less bullish movements are being seen by Doge which continues to consolidate around $0.002.
Doge has been forming small-bodied candles for around the last eight weeks which reflects uncertainty from traders.
Despite some significant increases taking place in altcoins over the past month, Doge has not undergone a significant increase since mid-December.
With the consolidation taking place around $0.002, traders may be unwilling to let price stay below this point.
However, an increased acceptance from traders of values below $0.002 may result in a sharp sell-off for Doge.
The daily candle further reflects the consolidation taking place in Doge.
Drops below $0.002 are quickly reversed by buyers, but any increases are also quickly reversed by sellers.
$0.0023 has been an important resistance point in past trading, and an increase would likely meet some resistance at this level.
- Litecoin acted as a leading indicator yesterday for market leader Bitcoin.
- Litecoin is recording bullish movements on the longer-term weekly timeframe, but this is unlikely to act as a leading indicator for Bitcoin.
- Doge continues to consolidate around $0.002 despite some bullish movements taking place in other altcoins.
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