- Bitcoin could be set for more upside, which could end the mini alt season we have just seen
- Litecoin is looking good for a potential play after Bitcoin’s $400 sucked much of the liquidity out of smaller alts
- Alt season is not over, but Bitcoin looks like it might be about to ruin the party
Litecoin is looking like a potential big cap play in the coming days, following a $400 move from Bitcoin that has knocked back several alt setups. We’ve had some great runs in the last couple of weeks, and alt season definitely isn’t over, but we may have to be more selective in our plays with many coins having now pumped.
Bitcoin Wakes up with $400 Move
Bitcoin’s $400 move back over $9,000 not only reminded us of its ability to crush alts, but also put the $10,000 end of level boss back in play. Keeping above the current level will present the opportunity for Bitcoin to test the $9,700 region again, whereas a rejection will very likely send us back to the range low of $8,400:
We can also see from the Bitcoin dominance chart that this move has tipped the balance back in Bitcoin’s favor:
This doesn’t mean that it’s the end of alt season, but it does mean that we need to keep a close eye on how the next few days play out to see if we experience a rejection of the level recently obtained by alts.
Litecoin Chart Suggests LTC is Gearing Up For Big Move
Litecoin is a nice bet right now, with the USDT pairing looking particularly good. The Litecoin chart gives me confidence that it will follow Bitcoin and potentially lead to money flowing back to alts again. As a major alt it is highly correlated with Bitcoin, and so acts a bit differently. These are the key levels I am looking for on the Litecoin chart:
As we can see, Litecoin is sitting very close to its weekly support, but on higher timeframes we can see that it has just broken a month-long downtrend, suggesting that it is ready to head higher. I am looking for it to break $44 and use that as support, at which point I will be even more confident that more upside is on the way.
Should the Bitcoin dominance swing back in Bitcoin’s favor I will have to reassess this play, but given its close correlation to Bitcoin it should move with it rather than suffer because of it.