Possible scenario (repeat of earlier price action)
Comment:
Something I've found interesting in observing the LTC/BTC market for years is the different correlations it exhibits with BTC/USD. LTC and BTC are clearly assets of the same class, and its commonly known that they (and most other alts) all move together with respect to price movement in terms of $. But one pair will always move faster or slower than the other, and thus we get the different movements in the ratio of alt coins to btc.
From personal experience, what i've noticed with LTC/BTC with respect to BTC/USD is that in strongly trending exuberant bull markets, they will be positively correlated. Similarly, in strongly trending exuberant bear markets, they are also positively correlated. But more often, BTC/USD will be in a trading range, or a less strong of a trend, whether bull or bear, and in these scenarios, for the most part, LTC/BTC will then be negatively correlated.
Why does this interest me? Well, although these correlations are obviously not 100% reliable, if you're observant enough, sometimes they can provide clues for what's coming ahead in the BTC/USD market. For instance right now, to me, LTC/BTC is looking bearish in the near term, and thus far the ratio has been negatively correlated, so to me this may be a hint that BTC/USD is due for a bullish move, or in other words, to continue on in this current correction up that it is in. Currently the price is trading around $385 on bitstamp.
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From personal experience, what i've noticed with LTC/BTC with respect to BTC/USD is that in strongly trending exuberant bull markets, they will be positively correlated. Similarly, in strongly trending exuberant bear markets, they are also positively correlated. But more often, BTC/USD will be in a trading range, or a less strong of a trend, whether bull or bear, and in these scenarios, for the most part, LTC/BTC will then be negatively correlated.
Why does this interest me? Well, although these correlations are obviously not 100% reliable, if you're observant enough, sometimes they can provide clues for what's coming ahead in the BTC/USD market. For instance right now, to me, LTC/BTC is looking bearish in the near term, and thus far the ratio has been negatively correlated, so to me this may be a hint that BTC/USD is due for a bullish move, or in other words, to continue on in this current correction up that it is in. Currently the price is trading around $385 on bitstamp.