Can BTC Reversals Be Predicted Using BTC.D and LTC?!
I recently stumbled upon an interesting correlation regarding BTC.D and LTC.
For those who are unfamiliar with these symbols, BTC.D (Bitcoin dominance) is the ratio of the total market cap of BTC versus the market cap of the entire cryptocurrency market and LTC (Litecoin) is one of the first altcoins to gain in popularity (often it is mistaken as the first altcoin, but that distinction technically goes to Namecoin).
What is interesting is that when one maps out the inverse of the ratio of BTC.D to Litecoin, one gets an interesting horizontal parallel channel (represented by blue lines) that has predicted reversals fairly accurately for nearly the past 5 years.
Note how when the ratio gets near near the top of the channel, a top is in for bitcoin indicating a reversal downward. What is also interesting is when the ratio gets near the bottom of the channel, a bottom is near for bitcoin indicating a reversal upward.
Litecoin has commonly been considered to be in lockstep with Bitcoin since its creation, but the trend has actually been trending downward since Litecoin's inception causing this interesting relationship.
What is concerning is the price has just recently reached near the bottom of the channel once again during the recent price drops.
Will this trend continue is anyone's guess, but I figured it was interesting enough to point out and rather beautiful in its symmetry as well.
What I do know is you should NOT take this as trading advice in any way whatsoever. This is not financial advice and is solely my opinion.
But also, please like if you also find this idea interesting or comment with your thoughts as well.
For those who are unfamiliar with these symbols, BTC.D (Bitcoin dominance) is the ratio of the total market cap of BTC versus the market cap of the entire cryptocurrency market and LTC (Litecoin) is one of the first altcoins to gain in popularity (often it is mistaken as the first altcoin, but that distinction technically goes to Namecoin).
What is interesting is that when one maps out the inverse of the ratio of BTC.D to Litecoin, one gets an interesting horizontal parallel channel (represented by blue lines) that has predicted reversals fairly accurately for nearly the past 5 years.
Note how when the ratio gets near near the top of the channel, a top is in for bitcoin indicating a reversal downward. What is also interesting is when the ratio gets near the bottom of the channel, a bottom is near for bitcoin indicating a reversal upward.
Litecoin has commonly been considered to be in lockstep with Bitcoin since its creation, but the trend has actually been trending downward since Litecoin's inception causing this interesting relationship.
What is concerning is the price has just recently reached near the bottom of the channel once again during the recent price drops.
Will this trend continue is anyone's guess, but I figured it was interesting enough to point out and rather beautiful in its symmetry as well.
What I do know is you should NOT take this as trading advice in any way whatsoever. This is not financial advice and is solely my opinion.
But also, please like if you also find this idea interesting or comment with your thoughts as well.
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