Bitcoin Cash (BCH) and Litecoin (LTC) prices staged a strong comeback during the weekend as BTC jumped and the crypto fear and greed index moved to the green zone. BCH soared to a high of $283, its highest point since January 12th. It has jumped by over 23% from its lowest point in January this year. Litecoin, on the other hand, jumped to $73.15, its highest level since January 13th.
Crypto fear and greed index rises
BCH and LTC prices surged as investors cheered the Bitcoin price action. BTC, the biggest cryptocurrency in the world, finally made a strong bullish breakout last Thursday as it rose from over $43k to $48,300. It is now nearing the YTD high of $49,080.
This trend happened for two main reasons. First, there are signs that investors have embraced a risk-on sentiment in the past few days. This is evidenced by the fact that the American equities have surged to a record high.
The S&P 500 index crossed the important resistance at $5,000 last week while the Nasdaq 100 and Dow Jones have moved to their record highs. This rally has been led by technology companies like Nvidia, Microsoft, and Meta Platforms. Data shows that there are now 7 companies with a market cap of more than $1 trillion.
Meanwhile, a sense of greed has spread in the market. For example, the fear and greed index has moved to the extreme greed area of 80 while the Bitcoin one stands at 62. This is a positive sign for Bitcoin and other digital currencies.
Further, BCH and LTC jumped as demand for Bitcoin ETFs rose, with IBIT and FBTC gaining the most inflows. Also, there is a sign that Fear of Missing Out (FOMO) has set in.
Litecoin price forecast
The 4H chart shows that the LTC price surged to a high of $73.10 during the weekend as Bitcoin surged. As it rose, the coin briefly flipped the important resistance at $72.45 into a support. This was an important level since the coin formed a small double-top pattern at this point on January 20th and 22nd.
While Litecoin price has pulled back slightly, it remains slightly above the 50-period and 25-period Exponential Moving Averages. The MACD and the Percentage Price Oscillator (PPO) have also pointed downwards. Therefore, the outlook for Litecoin price is still bullish as long as buyers can flip the resistance at $73. If this happens, it will retest the YTD high of $77.85.
Bitcoin Cash price prediction
BCH has a close correlation with Bitcoin, which explains why it jumped to $283.10 during the weekend. It rose and reached its highest point since January 12th. It then formed a small evening star pattern, which explains why it has retreated slightly.
Bitcoin Cash price has remained above the 50-period and 25-period moving averages while the MACD and the PPO indicators have pointed upwards. The coin is above the Ichimoku cloud on the four-hour chart. It is also slightly above the Woodie pivot point. Therefore, the coin will likely rebound and move to the first resistance point at $300.
What will move LTC and BCH prices?
Looking ahead, the BCH and LTC prices will react to the performance of Bitcoin this week. The key data to watch will be the US inflation report scheduled for Tuesday. A lower inflation figure will be a positive thing for them because it will increase the possibility of the Fed cutting interest rates in the first half of the year. Like stocks, these cryptocurrencies do well in a period of low rates.
The other crypto catalyst is the ongoing Bitcoin halving hype. Halving will reduce the Bitcoin rewards that are given to mining companies. In most cases, these coins tend to rally ahead of halving.
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