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Litecoin price made a bullish breakout in the overnight session as Bitcoin jumped above the important resistance level at $30,000 for the first time since June last year. LTC rose to a high of $94.27, the highest point since April 5 of this year.
Bitcoin and LTC correlation
Litecoin price did well because of three main reasons. First, the bank earnings season will kick off on Friday, when leading banks like Wells Fargo and JP Morgan will publish their financial results. Other regional banks like PNC and M&T Financial will publish their results next week.
Therefore, there is a likelihood that many regional banks with publish weak financial results after the collapse of Silicon Valley Bank and Signature Bank. Also, many others will likely warn about the impact of the commercial real estate sector.
In the past few weeks, Bitcoin did well when challenges in the banking sector emerged. That happened as people moved to its safety. BTC has a close correlation with LTC and other altcoins.
Second, Litecoin price is rising as investors bet on the next actions of the Federal Reserve. Most analysts believe that the Fed will hike interest rates by 0.25% in May and then hit a pause. Recently, several central banks like the Reserve Bank of Australia, Reserve Bank of India, and Bank of Canada have all paused their rate hikes.
Third, FOMO has come back in, with Bitcoin trading above $30,000. That crossover has confirmed that there are still more buyers in the market. As a result, many people have started moving back to the crypto market. For example, data by DeFi Llama shows that Binance had inflows of over $163 million in the past 24 hours. In the same period, Bitfinex, Huobi, and Kucoin had inflows worth over $30 million.
As we wrote here, Litecoin price has also jumped because of the upcoming halving event, which is scheduled for August next year. Historically, proof of work coins does well ahead of halving events because they reduce supplies.
Litecoin price prediction
The 4H chart shows that the LTC price has been in a consolidation phase in the past few weeks. During this period, it remained below the important resistance level at $96.08, where it failed to move above on March 24 and April 3.
Litecoin has moved above the 25-period and 50-period moving averages while the MACD has moved above the neutral level. Therefore, after Bitcoin’s breakout, the coin will likely have a bullish move in the next few days as buyers target the YTD high of $105.62.
The post Here’s why Litecoin price is on the cusp of a major breakout appeared first on Invezz.
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