Litecoin: The Bitcoin Oracle

The recent breakout of the Bitcoin price, was preceded by a even more aggressive breakout in the price of Litecoin. The chart above is the price of Litecoin and Bitcoin on Bitfinex. The two currencies are correlated and Litecoin recently has moved in advance of Bitcoin. The Litecoin price doubled in the last few days, while Bitcoin rallied over 10%.

For Bitcoin, the next important technical level is $260. $260 served as support during the last rally to $300. A break above $260 and traders will set their sights on $300 again. A failure and a swift fall back to $220 is likely. After the impressive 100% rally in Litecoin, the retrace was muted. Currently Litecoin is only a few cents shy of the local high of $3.27. Bitcoin pushed to $259 and then swiftly fell to $243. The price has stabilised around $250, and with an eye on Litecoin another push to $260 is a likely scenario.

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