Bitcoin Price Still Trading Flat While Litecoin Hits 7-Month High

View The immediate outlook for bitcoin will remain bearish while prices are held below the 6-hour chart 50-candle moving average, currently at $3,417.

A close above 0.010182 BTC would confirm an inverse head-and-shoulders breakout and open up upside toward 0.013 BTC. The rally may not happen immediately, as the 14-day relative strength index is reporting overbought conditions.

LTC's bullish setup would be invalidated if prices fall back below 0.010182 BTC. That looks unlikely given the bullish long-term moving averages.

Bitcoin, which continues to languish near seven-week lows, is being outshone by a surge in litecoin prices.

BTC, the world's leading cryptocurrency by market capitalization, is currently trading at $3,390 on Bistamp and risks falling to December lows near $3,100, having charted bearish higher low at the crucial 6-hour chart 50-candle moving average this week.

While the exact reason for double-digit gains is not clear, the cryptocurrency may have picked up a strong bid in reaction to the news that the Litecoin Foundation is in talks to implement privacy features for litecoin via the Mimblewimble protocol.

The broader market sentiment may improve if BTC responds to LTC rally by climbing the crucial resistance of the 6-hour chart 50-candle moving average, currently located at $3,417.

On the daily chart, LTC/BTC is trading well above the inverse head-and-shoulders neckline level of 0.010182 BTC. A bull breakout would be confirmed if prices close today above that level.

The probability of LTC confirming an inverse head-and-shoulders breakout is high.

Bitcoin and litecoin image via Shutterstock; charts by Trading View.