Litecoin [LTC] Rallies Amid Broader Market Swings as Bitcoin [BTC] Fails to Hold $57K Support

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

Amid broader market swings, spearheaded by Bitcoin’s [BTC] failure to hold the crucial $57K support, Litecoin [LTC] 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

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.

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 begs the question: What caused the divergence?

A tactical development unfolds to propel Litecoin’s surge

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

Moreover, the ongoing volatility in Bitcoin has futures traders’ attention, as seen in the high Open Interest highlighted below.

Following the day Bitcoin bears endangered a highly anticipated rebound, Litecoin’s Open Interest rose from $213M to reach $252M, reflecting an 18.3% increase, while its volume went from $277M to $482M, reflecting a 74% rise.

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

This surge in user activity aligns with LTC’s recent upward trend, highlighting Litecoin’s strategy to outpace Bitcoin with faster transactions and lower fees – a tactic that paid off.

However, a word of caution is necessary, given the earlier September trend where LTC mirrored BTC’s decline.

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

Finally, if traders continue to show interest in Litecoin, it could approach its previous rejection point at $76.

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

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