Ethereum (ETH) and Litecoin (LTC) have taken the lead in the cryptocurrency market. Both virtual currencies have experienced a 10% expansion in the last 24 hours. They are now the leaders in the market as Bitcoin (BTC) continues to be traded close to $40,800.
Ethereum and Litecoin Take the Lead
Ethereum and Litecoin, two of the largest cryptocurrencies in the world have taken the lead in the market. These two digital currencies have expanded by over 10% and are getting closer to key resistance levels. Meanwhile, Bitcoin remains almost without change compared to yesterday’s price.
Ethereum is now being traded 11.26% higher than 24 hours ago while Litecoin is registering 9.67% gains, according to CoinMarketCap. Ethereum is getting closer to $1,400 and Litecoin is trying to move towards $190 and eventually reach $200 per coin.
These two cryptocurrencies have also improved their performance against Bitcoin. Both of them are showing very positive signs. This could help them outperform Bitcoin in the short term.
Bitcoin Cash (BCH) and Cardano (ADA) had also experienced very positive gains. Indeed, BCH surged by 43% in the last 24 hours and ADA registered a 90% increase in the last 7 days. This is massive for both of these virtual currencies that want to catch up with Bitcoin.
Bitcoin Remains Above $40,000
Talking about Bitcoin, Konstantin Anissimov, the Executive Director at CEX.IO told UseTheBitcoin that the sharp drop experienced by BTC at the start of the last week activated buying entry orders in the BTC/USD trading pair. Furthermore, these buy orders refuelled the rally and helped Bitcoin reach historical highs.
In terms of fundamentals, Anissimov stated that the recent bull run could also be related to the economic relief packages in the United States. The announcement has harmed the U.S. dollar and it did have an impact on the BTC/USD cross rate.
For the short term prospects, Mr. Anissimov explained that the 3.618 Fibonacci level points at $42,538 per BTC. The previous one was at $31,000 (2.618). He considers that it is possible for Bitcoin to retrace to $34,500 and then move BTC towards $50,000 by the end of the first quarter of 2021.
On the matter, Anissimov stated:
“If the downside correction comes through, it could provide another buying opportunity for the market makers and lesser market players alongside, which could eventually take BTC/USD to new highs around 50,000 by the end of the first quarter of 2021.”