Litecoin continues to gain strength as traders’ attention shifts to a broader altcoin market against Bitcoin’s slowing uptrend.
Litecoin (LTC) prices surged up to 35% to hit a one-year high against Bitcoin (BTC) this week, prompting analysts to predict an extended upside momentum for the remainder of the ongoing monthly session.
LTC/BTC 1-week candle chart (Binance). Source: Tradingview
The LTC/BTC exchange rate touched 6,358 sats during the Asia-Pacific trading hours. The pair later corrected to an intraday low of 5,776 sats ahead of the London opening bell as profit-taking sentiment grew near the sessional peaks.
But, according to data collected from Glassnode, the downside correction did little in offsetting Litecoin’s growing bullish strength. The blockchain analytics firm noted a dramatic spike in the number of active Litecoin addresses beginning 2021, indicating a rising demand for the silver cryptocurrency just as the Bitcoin uptrend shows signs of cooling off.
Number of active Litecoin addresses rise. Source: Glassnode
The Litecoin price uptrend surfaced out of the womb of an ongoing altcoin market boom. Recent sessions saw Bitcoin losing its market share to a large army of rival cryptocurrencies, with Ethereum, the second-largest digital asset by market capitalization, hitting a record high above $3,500.
Ethereum hits 3-year high against Bitcoin. Source: ETHBTC on Tradingview
Litecoin similarly did well in both the Bitcoin- and US-quoted markets. On Thursday, the LTC/USD exchange rate reached within the range of its previous historic high of $420, hitting $365.20 before turning lower into the London session.
Armchair analysts with a massive following on social media have started treating the Litecoin uptrend as a cue for a bigger and better rally ahead.
$LTC recently rallied to $360+Which means #LTC has broken two very important resistance levels:• $226• $305These are #Litecoin Four Year Cycle levelsBreak the old All Time Highs and Candle 1 will rally to new unimaginable highshttps://t.co/BCRcr7B6GB pic.twitter.com/mZl1A9BOyK
— Rekt Capital (@rektcapital) May 6, 2021
Meanwhile, the Bitcoin market’s consolidation mood continued to push traders to seek profitable opportunities in the altcoin market. The benchmark cryptocurrency’s declining dominance in the crypto market came out to be inversely correlated with the LTC/USD price performance, as shown in the chart below.
Litecoin vs. Bitcoin Dominance Index. Source: BTC.D on Tradingview
Bitcoin is trading inside the $51,000-60,000 range, with its long-term sentiment skewed to the upside. In its stable, consolidating avatar, the flagship cryptocurrency provides bullish cues to the altcoin market, including Litecoin.
Bitcoin enters a bearish Rising Wedge range. Source: BTCUSD on Tradingview
“I think it’s realistic to say that Litecoin will reach above $1,000 eventually,” a pseudonymous crypto celebrity tweeted on Thursday. “Maybe even close to $1,500.”