The Bitcoin Cash and Litecoin prices have tilted upwards after BTC managed to move above $40,000. The BCH is trading at $542 while the LTC is trading at $145. The two have risen by about 3% in the past seven days, bringing their market capitalization to more than $10 billion and $9.76 billion, respectively.
BCH and LTC price correlation with BTC
Litecoin and Bitcoin Cash are cryptocurrencies that are relatively similar to Bitcoin. Bitcoin Cash emerged from a Bitcoin hard fork in 2017. Litecoin, on the other hand, was developed using the same technology like Bitcoin. The only difference between Bitcoin and Litecoin is that the latter is relatively faster and cheaper to use. The other difference is that Bitcoin is widely known and held by institutional investors than Litecoin.
A closer look at Bitcoin Cash, Litecoin, and Bitcoin shows that the three have a close correlation. As shown below, the three coins tend to move in the same direction. Still, BCH and LTC have a closer correlation.
The three coins are rising today because Bitcoin has managed to zoom past the $40,000 level once again. Although it is still below this week’s high of more than $42,000, it is a good sign. It means that there are still some buyers left in the market.
Therefore, Bitcoin Cash and Litecoin prices next key catalyst will be the price action of Bitcoin. The bullish trend will likely be confirmed if the US publishes weak jobs numbers. If the data disappoints, BTC could keep rising because it will signal that the Fed will hold steady for longer.
Bitcoin Cash price prediction
A look at the four-hour chart shows that the BCH price is at an important level. The current level of $545 is important because the coin struggled moving above the price in July. Bitcoin Cash has also formed a bullish pennant pattern and is being surrounded by the 25-day and 15-day moving averages. It is also along the 61.8% Fibonacci retracement level.
Therefore, there is a possibility that the coin will break out higher during the weekend. This view will be validated if the price rises above the key resistance at $566. A volume-supported move above that resistance will see it keep rising to $700. However, a drop below the 50% retracement at $515 will invalidate the bullish view.
Litecoin price prediction
The four-hour chart shows that the LTC price rose to $150 on August 1 and then retreated to $135.55 mid this week. Now, the coin is attempting to crawl back. Along the way, it has moved above the 25-day and 15-day EMA. It seems to be forming the handle part of the cup and handle pattern. Therefore, Litecoin seems to be on the cusp of a bullish breakout. If this happens, the next key level to watch will be $160.