Bitcoin (BTC) is tracking our bullish scenario. Support at $4890 held (Figure 1). This seems to set up the next leg up to $5,697.
Litecoin technicals may be relevant to future Bitcoin (BTC) direction. We see Bitcoin (BTC) “catching up” with Litecoin (LTC) in terms of the strength of the uptrend. That said, Litecoin (LTC) was a leader on the way up. So even if Litecoin (LTC) has trouble getting through major resistance at $105, we think it would be good for Bitcoin (BTC) if Litecoin (LTC) can hold support at $84 (Figure 2).
Bottom Line: A Litecoin (LTC) consolidation could be a good thing. That said, it is important for Litecoin (LTC) to consolidate in an orderly fashion. If that happens, it leaves room for Bitcoin (BTC) and Ethereum (ETH) to lead the next leg up. We see the relationship between the two coins as a balancing act. There needs to be balance between the Litecoin (LTC) consolidation and the Bitcoin (BTC) uptrend.
The Crypto.IQ Trading Desk is working with clients to manage the Litecoin (LTC) consolidation and on finding entry points in Bitcoin (BTC)
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