Litecoin’s next surge may depend on Bitcoin’s market performance

The bearish lows of December 2019 were overcome with the recent collective surge witnessed by the crypto market. Bitcoin silver’s counterpart Litecoin experienced a similar hike over the period as the 7th largest digital asset breached its psychological resistance of $50.

Litecoin was valued at $59.60 at press time with a market capitalization of $3.77 billion. The coin also registered a 4.76 percent incline in the past 24 hours, with a trading volume of $4.6 billion over the last day.

1-hour chart

LTC/USD on Trading View

The 1-hour chart of Litecoin mirrored a similar pattern over the course of last week. A symmetrical triangle was pictured on 12th January which registered a breakout on the 14th of this month. The bullish breakout stretched Litecoin’s valuation above the key $55 key resistance and the price continued to consolidate above the key level.

After the surge, another symmetrical triangle was observed which registered a bullish breakout. The resemblance to the earlier breakout indicated a similar surge followed by a dump may occur in the next 24-48 hours.

VPVR indicator exhibited a higher trading volume between the range $55 and $60, which validates the current consolidation period of LTC.

Relative Strength Index or RSI pictured a decline that may undergo a trend reversal after the bullish reaction surfaces.

Source: Coinmetrics

However, Bitcoin could play a major role in Litecoin’s price action as the rise on 14th January was largely due to Bitcoin’s 10 percent growth. Bitcoin and Litecoin currently have a high correlation index of 0.74 and the possibility of Litecoin undergoing another surge may depend on Bitcoin’s market performance.

In case of a bearish pullback for Bitcoin, Litecoin may follow Bitcoin’s path as well as invalidate the above movement.

Conclusion

Litecoin consolidating above the key resistance of $55 is a positive sign but over the next 24-48 hours, the price could mirror Bitcoin’s direction.