- LTC’s price has risen 8% since the recent Bitcoin plunge.
- Is it going to continue this trend, or will Bitcoin’s volatility win out?
Litecoin [LTC]The market is experiencing a broad range of swings led by Bitcoin’s [BTC] Failure to hold the critical $57K supports has rallied about 3% in the last seven days. Trading at $66.37 as of press time.
According to analysts, historically, the month of September is a bullish one for LTC. AMBCrypto, however, noted that Bitcoin Often turns bearish at this time of the year.
Is the September crash of Bitcoin driving Litecoin? Investors are choosing LTC to be a safe alternative, but is this a trend? AMBCrypto investigates.
Bitcoin’s influence over LTC is still strong
Since the beginning of August, LTC’s price has risen by over 17% from $56 up to $66. This increase was likely fuelled by Bitcoin’s recent significant rise, during which it tested $64K.
LTC bulls, however, have stopped a similar drop. While Bitcoin began September with a negative note by dropping below $57,000, LTC bears prevented the same decline.
AMBCrypto analysis shows that despite BTC dominating the market, LTC maintained an upward trend of 8% since August 28th.
This level of divergence between Bitcoin and altcoins, while well known, is rare.
AMBCrypto analyzed historical charts of price to see if this is just a short-term anomaly or an indication of a larger pattern.
Chart above reveals a strong correlation between these two coins. During a September rally three years earlier, LTC was testing the $200 level while BTC had broken through $50K.
LTC dropped as BTC returned to its $40K support level. Litecoin is also boosted by the bullish Bitcoin momentum each time it reaches its highest levels.
The trend shows that Bitcoin is still dominant over Litecoin. It may be a short-term anomaly. The question is: what caused this divergence between the two currencies?
Behind Litecoin’s rise is a strategic development
This is a screenshot from X. postLitecoin’s developers made an historic announcement: Litecoin is now ahead of Bitcoin for transaction volume by 10%.
As can be seen from the large open interest below, Bitcoin’s volatility continues to attract the attention of traders.
Litecoin’s Volume jumped 74% from $277M (an increase of 73%) to $482M after the Bitcoin bears sabotaged a long-anticipated recovery.
Bitcoin’s OI fell from $31B down to $29.07B. This is a 6.2% drop, and its volume decreased from $78B up to $68B. That represents a decline of 12.8%.
This surge in user activity aligned with LTC’s recent upward trend, emphasizing Litecoin’s strategy of outpacing Bitcoin through faster transactions and lower fees – a tactic that has clearly paid off.
There is still reason for caution, however, as the trend in September was that LTC followed BTC.
Click Here to Read Litecoin’s [LTC] Price Prediction 2024–2025
Litecoin could reach its rejection threshold of $76 if it continues to be attractive to traders.
If Bitcoin’s volatility exceeds LTC’s gains, it is possible that the price will retrace towards $50.
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Source: ambcrypto.com