Here Come the Weaker Crypto Sisters

Here Come the Weaker Crypto Sisters

Bitcoin (BTC)….the darling of crypto coins. My colleague, Matt Weller, discussed earlier today how the worth of bitcoin has been slowly rising above $10,000, currently trading near $10,325. He also writes how BTC many be ready for an interruption within the 40%+ ascension since the start of the year. Price action today put during a meteor on the daily timeframe, while retracing to 50% of the move from the highs on June 25th, 2019 to the lows on December 18th at $10,245. The RSI is starting to diverge because it tries to tug back after today’s candle. Still, BTC is up .71% on the day. 

Back in 2017, there have been other closely monitored cryptos which took flight along side BTC, like Ethereum (ETH), Litecoin (LTC), and Ripple (XRP). like BTC, ETH put during a high on June 25th at $317.84. Again, like BTC, price fell to horizontal support near 117.29, and broke higher, out of a falling wedge. And again, even as with BTC, price rose to the five hundred retracement level from the June 25, 2019 high to the December 17th lows at 239.76. Here is where the similarities end. ETH is trading up near the 61.8% retracement level from the previously mentioned timeframe at $264, UP +11.25% ON THE DAY!! True, the RSI in is in extreme overbought territory, but it's still pointing up. 

Not the be outdone, LTC and XRP have moved in similar fashion to BTC and ETH. Both moved lower from the June highs, and both broke higher out of falling wedge formations in later December 2019. However, both LTC and XRP have only been ready to retrace to the 38.2% level from the June 2019 highs to the December 2019 lows. Still, LTC is at $82.15, up 6.7% today, while XRP is at $.3029, up 7.55% today. Notice once more how the RSI’s also are in overbought condition but are still pointing higher. 

In summary, XRP and LTC have only retraced 38% of the move from June 2019 to December 2019, while BTC and ETH have retraced 50% and 62%, respectively. additionally , BTC is already showing signs it's going to turn lower. 

There’s information in that: It appears that LTC and XRP are only moving higher due to BTC and ETH. If BTC and ETH do pull back, await LTC and XRP to tug back at a faster pace than BTC and ETH!