Litecoin has seen a 40% gain since Monday this week as opposed to the 5% seen in Bitcoin. This is extremely bullish from the asset as it seems investors have flocked to the asset as a store of value amid Bitcoin and Eth selloffs
Many large institutions hold Bitcoin and Ether on their portfolios as collateral so they are more likely to slide when there are liquidity issues or market collapses. This may be a reason why we have seen investors shift their holdings from Bitcoin and Eth to Litecoin.
The Dollar is falling and has hit the levels seen post CPI data a couple of weeks ago. If more data further iterates that interest rate hikes are working, then we will continue to see declines in USD against major currencies.
Gold is stronger due to the fact that data is coming out supportive of the Fed’s rate hikes. As inflation data comes out healthier, the Fed won’t need to hike rates as aggressively which in turn makes holding the Dollar more attractive for investors.
In today’s DIFX Analytics, we’re going to look into the following assets:
Litecoin gains 40% this week
Since the start of the week, Litecoin has gained a total of 40%. These are significant gains considering that the rest of the major cryptos in the market have not been able to achieve these numbers.
RSI is still bullish and there may be another opportunity to go long in LTC. Investors should keep an eye on the asset.
Dollar bears control the market
The Dollar Index is trending in a bearish direction. The RSI on the 4-hourly chart hit 22 before previous reversals. We may see the Dollar continue its downward trend until this level is hit.
The 50-day and 100-day EMA on the 4-hourly chart is moving further away from each other which signals increased negative price action.
Bitcoin seeing some short-term gains
Bitcoin is now trending upwards after rejecting $15,600. We can see the EMAs approaching each other and if they intersect, this would signal more gains in Bitcoin.
As the Dollar enters a bearish run, we can expect cryptos to see some gains. The next resistance line is $17,625.
Gold hit $1755
Gold hit $1755 during late-night trading. We saw the asset reject $1727 after the data release during New York trading. RSI is strong and is gaining upward momentum.
We have seen the 50-day EMA move further away from the 100-day EMA which indicates more bullish price action to follow.
To learn more about the markets and start your trading journey, sign up now on Digital Financial Exchange (DIFX) to create your diverse portfolio of assets.
About Digital Financial Exchange
Digital Financial Exchange (DIFX) is a centralized cross-asset crypto exchange that allows users to trade between multiple asset classes that include indices, forex, crypto, metals, and commodities, just to name a few. The DIFX fully-insured crypto wallet comes from a partnership with Fireblocks, one of the leading crypto custodians in the world.
DIFX was presented with the “Most Trusted Cross-Asset Trading Platform — 2022” by the Crypto Expo Dubai and the “Best New Trading Platform Award” at the E-Business Awards 2021 by Entrepreneur Middle East and the Forex Expo 2021.
DIFX shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information herein contained. The contents of this publication should not be construed as an express or implied promise, guarantee, or implication by DIFX that the forecast information will eventuate, that clients will profit from the strategies herein or that losses in connection therewith can or will be limited. Trades in accordance with the recommendations in an analysis, especially leveraged investments such as foreign exchange trading and investment in derivatives, can be very speculative and may result in losses in particular if the conditions or assumptions used for the forecast or mentioned in the analysis do not eventuate as anticipated and the forecast is not realized.