With general consensus being that Litecoin price often leads the way for Altcoin trend, a further fall against Bitcoin could be coming

While the top 10 have shown growth of at least over 3% over the past 24 hours (the highest are Polkadot and Chainlink with over 7%), Litecoin has shown its decline. At press time, Litecoin price is trading around $ 74, down slightly over the past 24 hours. It seems that a bullish push in the past week has brought LTC to a year-long downtrend line against Bitcoin but has unfortunately been toughly rejected.

Correlation between Litecoin price and Bitcoin could lead to a drop in the market

Litecoin was left behind after the last altcoin season as Ethereum and DeFi drew all their capital. When DeFi ends, the uptrend turns to Bitcoin. But for now, it could finally be Litecoin’s turn. While Litecoin has shown its weakness today, it could become the cryptocurrency that will benefit the most from the biggest news of the year.

There’s not even news yet about PayPal supporting cryptocurrencies and making them available to the company’s 350 million users. It was the “shot heard ’round the world on Wall Street,” according to crypto bull Mike Novogratz. It is also the catalyst potentially triggering a new bull market for Bitcoin. There are currently only four cryptocurrencies offered by PayPal: Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. And then, Litecoin was up over 25% just this week.

litecoin-price-often-leads-the-way-for-altcoin-trend

The path to the next altcoin season arrives after Bitcoin sets a new record | Source: TradingView

The daily chart above shows a clear breakout of Litecoin’s downtrend line against the dollar. However, for Bitcoin, things are not bad either.

Litecoin was rejected for the fourth time from a downtrend line originating from the 2019 altcoin peak in the chart above. During that time, Litecoin started the new year with a bang due to halving its block reward. . The content reached 500% profit before the big crash. Bitcoin ran for $ 13,800, leaving a lot of money behind, starting a downtrend on the LTC/BTC pair.

Litecoin’s weakness against the BTC pair could suggest that there is still another major drop for altcoins against Bitcoin. While Bitcoin rises to its all-time highs, altcoins could fall victim to BTC’s rise again just like last year.

BTC dominance is also breaking out of the extended wedge pattern. The target is similar to the previous structure’s measured move, which will bring this index back to 83%, completely wiping out altcoins in the process. Altcoins may continue to be dragged in USD value due to Bitcoin’s appreciation; each altcoin’s rate could fall once more to sweep current lows.

litecoin-price-often-leads-the-way-for-altcoin-trend1

Litecoin was rejected at the downtrend line against BTC | Source: TradingView

The only chance for Litecoin maybe the fact that the recent altcoin season has completely ignored it. The two laggards – Litecoin and XRP – can still perform well while Bitcoin shatters the rest of the space.

When LTC breaks out of the leading cryptocurrency, it will grow 150 to 450% proportionally. With Bitcoin getting more expensive and out of reach for retail investors and Litecoin acting as the most cost-effective way to own PayPal coins fully. The downtrend line that is currently holding LTC back might not be in operation any longer.

You can see the LTC price here.

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