$20k Bitcoin? Not Yet As Changing Charts Favor Crypto Rivals
Summary for https://www.coindesk.com/20k-bitcoin-not-yet-changing-charts-favor-crypto-rivals/:
As the charts show, a recovery in ETH/BTC, LTC/BTC, BCH/BTC and XRP/BTC from intraday lows is already weighing over bitcoin.
The bullish outlook for ETH/BTC, LTC/BTC, BCH/BTC and XRP/BTC indicates the rotation of money out of BTC and into alternative currencies is likely to continue in the next week.
This flow of money is best represented by the bullish break seen in cross cryptocurrency charts – i.e. ETH/BTC, LTC/BTC, BCH/BTC and XRP/BTC.
For example, a rally in ETH/BTC could be an indication that the money is flowing out of bitcoin and into ether (ETH).
This view gels well with the fact that investor community is warming up to the idea of a larger pullback in bitcoin following the BTC futures listing on the CME this Sunday.
Meanwhile, ether (ETC), bitcoin cash (BCH) and litecoin (LTC) have dropped 6 percent, 8 percent, and 10 percent, respectively.
As per CoinDesk's Bitcoin Price Index (BPI), bitcoin is now trading at $17,760, down from the record highs above $18,000 hit earlier today.
Bitcoin is on the rise against the U.S. dollar, but a look at all of its relevant trading pairs (LTC/BTC, ETH/BTC) suggests the move to $20,000 could take longer than expected.
According to the survey by LendEDU, almost three-quarters of bitcoin investors in the U.S. plan to increase the size of their holdings next year.
As per CoinMarketCap, bitcoin (BTC) has appreciated 7.57 percent in the last 24 hours.
Having successfully defended $16,000 earlier this week, bitcoin regained bid tone today and clocked a fresh record high above $17,800.
The world's largest cryptocurrency by market capitalization has traded more or less sideways over the last few days as the alternative currencies rallied sharply to new highs.
While tables appear to have turned in favor of bitcoin again, the charts suggest relief could be transient.
It also means bitcoin could have a tough time staging a sustained rally to $20,000.
That said, a sharp pullback in the altcoins seems to have put a mild bid under bitcoin (BTC) today.
But, as discussed yesterday, the lackluster action in BTC could be due to the rotation of money from BTC (large cap) and into alternative currencies (or so-called small caps).
Ripple's XRP cryptocurrency is scaling new heights today, but the rally looks overbought, according to price chart analysis.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice.