Why Litecoin Is Poised To Bounce Versus Bitcoin

Litecoin has had a brutal “bull market” if you can even call it that for the once popular cryptocurrency built on Bitcoin’s code. However, that all might soon turn around, as a massive bounce is brewing on the LTCBTC trading pair.

A reversal on the trading pair could help Litecoin catch up to the rest of the market, which has already set new all-time highs and then some. If and when LTC recovers against BTC, the upside could be swift and violent. Here’s why.

How Long It’s Been Lights Out For This Altcoin’s Bull Market

Comparing Litecoin’s chart next to the likes of Dogecoin, Ethereum, Bitcoin, Binance Coin, and several others, shows just how dark the depths of the crypto winter got for the altcoin.

Litecoin was an incredible performer at the height of the last bull market, rising to beyond $360 per LTC in a flash.

The altcoin also led the charge in the 2019 crypto market recovery, fueled by buzz surrounding the protocol’s block reward halving.

Related Reading | Why Litecoin Is The Next Crypto To “Teleport” Like Dogecoin

Litecoin’s code is very similar to Bitcoin’s, giving it several key similarities that should be benefiting the “digital silver” counterpart currently, such as hard-coded scarcity.

Only 84 million LTC exist, a mere four times the amount of the BTC supply. And if scarcity is driving the demand behind Bitcoin, the fact that Litecoin isn’t at all following is confusing.

But a bounce is due, according to one crypto analyst‘s interpretation of the LTCBTC price chart.

litecoin ltcbtc

A hidden dull div on the OBV could trigger a breakout of the falling wedge | Source: LTCBTC on TradingView.com

Smart Money Signals That Litecoin Is Ready To Bounce Against Bitcoin

The trader who shared the above chart says that LTCBTC is currently at long-term support of a falling wedge, coinciding with a bullish divergence on the on-balance volume indicator (OBV).

The OBV is often regarded as the “smart money indicator” – named as such for its…

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