Litecoin is up 61% in one week, outperforming the entire market and according to analysts, there are three reasons for the price surge as we are reading more about in today’s Litecoin news.
In the past week, Litecoin is up 61% and it is the best-performing cryptocurrency over the past week, outperforming both the entire DeFi space and Bitcoin. There are three major reasons why Liteocin was rallying in tandem with BTC like the breakout against it, the historical relevance of the coin in other bull cycles, and the growing certainty around BTC’s price cycle. Most of the altcoins are stagnating against the BTC pair and the ETH/BTC pair is far from seeing breakouts in the near-term across the low time frames.
However, LTC showed strong momentum and improved technical structure to outperform BTC in mid-December. Johnny Moe, crypto trader said:
“$LTC on the $LTCUSD chart is just absurd, but most of this has just been pacing $BTC, so there hasn’t been much alpha here. If the $LTCBTC pair gets its breakout, that could change pretty quickly. Also worth noting, $LTC is the only alt major really keeping pace with $BTC.”
Due to litecoin’s momentum and the fact that it remained the only large-cap altcoin that outperformed BTC, the entire market sentiment improved. Another trader is known as “Byzantine General” said that the current BTC rally is a result of institutional investors. He noted that the altcoin market could take a while to rally because the institutions are focusing on BTC but he pinpointed ETH as the outlier that has the actual fundamental value but LTC is less certain than ETH as the trader wrote:
“Reality check about altcoins that you probably don’t want to hear (telling). This $BTC rally has been because of institutional orderflow. Those people aren’t going to gamble on random sh*tcoins. ETH is an outlier. Basically there are only 2 coins that the outside world thinks has fundamental value and that’s BTC & ETH. So ETH should be good. LTC is less certain, but still a useful coin so I’m not particularly bearish on it.”
Altcoins were in a bit of an awkward position where if BTC continues to rally, they will stagnate against the number one cryptocurrency. If the BTC price drops, the altcoins will most likely suffer from larger drops. Litecoin performed strongly against BTC and this situation indicates there’s more strength and resilience at a technical level. In the foreseeable future, it remains to be seen whether BTC will consolidate above $23,000 or will see a strong correction by the year’s end.
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