Connect with us
Active Currencies 14758
Market Cap $2,187,954,434,003.80
Bitcoin Share 54.55%
24h Market Cap Change $-4.17

Litecoin gains 5% amidst Bitcoin’s September struggles – Historical trend?

3min Read

Despite Bitcoin’s recent downturn, LTC has shown resilience, maintaining an 8% upward swing.

Litecoin gains 5% amidst Bitcoin's September struggles - Historical trend?

Share this article

  • LTC has diverged notably from Bitcoin’s recent plunge, holding an 8% upward swing. 
  • Will it maintain this trend or succumb to Bitcoin’s volatility?

Litecoin [LTC], amid broader market swings, led by Bitcoin’s [BTC] failure to hold the crucial $57K support, has rallied approximately 3% over the past seven days, trading at $66.37 at press time.

Historically, September has been bullish for LTC, as cited by analysts. However, AMBCrypto noted that Bitcoin often turns bearish this time of year.

That being said, is Bitcoin’s September slump driving Litecoin’s rally? Are investors choosing LTC as a safer bet, or is it becoming a standout alternative? AMBCrypto investigates.

Bitcoin’s influence on LTC remains strong

LTC price chart

Source : TradingView

Interestingly, since early August, LTC has surged over 17%, climbing from $56 to $66. Bitcoin’s significant rally, which saw it test $64K during this period, likely fueled this increase.

However, while Bitcoin started September on a bearish note, dropping below $57K, LTC bulls have prevented a similar decline. 

According to AMBCrypto’s analysis, since the 28th of August, despite BTC’s bearish dominance, LTC has maintained an 8% upward swing.

While Bitcoin’s influence on altcoins is well-known, this level of divergence is unusual. 

AMBCrypto examined historical price charts to determine whether this anomaly is a temporary blip or reveals a deeper pattern.

Litecoin price and BTC price comparison

Source : Glassnode

The chart above revealed a striking correlation between the two coins. Three years ago, during an early September rally, LTC tested the $200 mark while BTC broke through the $50K resistance level.

Following this, LTC fell as BTC retraced to the $40K support line. Additionally, each time Litecoin has approached its highs, it has been bolstered by Bitcoin’s bullish momentum. 

In short, this trend underscores Bitcoin’s dominance over Litecoin, suggesting that the recent anomaly may just be a temporary blip. This raises the question : What caused the divergence?

Behind Litecoin’s surge is a tactical development

In a recent X (formerly Twitter) post, Litecoin developers announced a historic achievement: Litecoin now leads Bitcoin in transactional volume by over 10%.

In addition, Bitcoin’s ongoing volatility has clearly attracted the attention of future traders, as evidenced by the high open interest shown below.

LTC open interest

Source : Coinglass

Following the day, Bitcoin bears jeopardized a much-anticipated rebound, Litecoin’s Open Interest surged from $213M to $252M, marking an increase of 18.3%, while its volume jumped from $277M to $482M, reflecting a 74% rise.

Conversely, Bitcoin’s OI slipped from $31B to $29.07B, a decrease of 6.2%, while its volume dropped from $78B to $68B, reflecting a 12.8% decline.

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.

However, caution is warranted, given the earlier September trend where LTC mirrored BTC’s decline. 


Read Litecoin’s [LTC] Price Prediction 2024–2025


Overall, if Litecoin continues to attract interest from traders, it might approach its previous rejection point at $76. 

Conversely, if Bitcoin’s volatility overwhelms LTC’s gains, the price could retrace toward $50.

Share

Ripley is a full-time crypto-news journalist with a fascination for blockchain tech and how it makes lives easier on multiple levels. She has been trading since 2019, and has a keen eye for market movements and analyses.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.