Bitcoin, Ether, Litecoin, Ripple: technical examination

Bitcoin, Ether, Litecoin, Ripple: technical examination

2022-12-20 • Updated

The hypothesis laid out here is that in the crypto environment, there are also polarities like stable assets and risky assets, similar to the traditional financial environment. It doesn’t matter how risky Bitcoin or any other asset is in relation to the US dollar or any other traditional asset. What matters is how risky or stable are the digital currencies in relation to one another – and this is how you need to treat them. Here are some examples to examine this hypothesis.

Below, you have three charts: Litecoin, Ether, and Bitcoin respectively. As you can see, they are almost identical. Therefore, it is reasonable to assume that in the eyes of global traders, they have a very similar risk profile, if not identical.

BTC, ETH, and LTC have very similar trajectories most of the time

You may rightly say that Bitcoin – as well as any other digital asset – is considered a highly risky asset in comparison with the US dollar or other fiat currencies. That will be true. However, you have to treat the digital world as somewhat separate from the traditional one and compare Bitcoin (or, similarly, Litecoin) not to the US dollar or the Euro but to other digital currencies. Such as Ripple for example.

xrp btc ltc.png

Have a look at the M5 chart below. It is obvious that if Litecoin and Ripple are not inversely related all the time, they definitely belong to different classes of assets in the crypto universe. While Litecoing was trembling and pressed above the support of 192, Ripple did a rocket-launcher leap from 0.4250 to 0.5180 gaining more than 10% in an hour. Then, as soon as its upward march stopped and bears took over, Litecoin shot from above 192 to 205.45 to eventually stabilize at 201. Roughly, it seems like a 75% inverse correlation. This is one of the clues for you to trade the crypto assets.

Ripple appears to be much more volatile and inversely correlated to BTC, ETH, and LTC

xrp ltc.png

                                                                                            LOG IN

Similar

TESLA Earnings Report Outcome Forecast
TESLA Earnings Report Outcome Forecast

In a call scheduled for January 25, 00:30 am GMT+2, the Tesla Inc. team will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.

Gold Holding Well Above 1775
Gold Holding Well Above 1775

Gold Daily Chart Throughout last week’s trading, gold traded within a tight range, but it also managed to hold well above its 1775 support area until the end of the week, while the technical indicators has improved over the past few days, including…

Latest news

Will USDJPY slide lower in 2023?
Will USDJPY slide lower in 2023?

Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?

BoC Rates Could Alter The Trend on USDCAD and others
BoC Rates Could Alter The Trend on USDCAD and others

Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.

MSFT faces gloomy forecasts ahead of earnings report
MSFT faces gloomy forecasts ahead of earnings report

In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera