The Litecoin price is hovering at a key level of resistance as Bitcoin surges above the $50,000 mark. The LTC coin is trading at $187.82, which is slightly below the key resistance at $190. It has a market capitalization of more than $12 billion, making it the 14th biggest coin in the world.
Most cryptocurrencies have a close relationship. Indeed, a calculation of Bitcoin and Litecoin shows that the two coins have a correlation of almost 1. This happens because the two blockchains work the same and that many investors use LTC as a proxy for Bitcoin. Besides, with $10,000, one can buy more Litecoins than Bitcoins.
Therefore, the LTC price is on the cusp of a bullish breakout as investors react to the strong performance of Bitcoin. The coin has managed to jump by more than $20,000 in the past four weeks. This has seen it push the total market capitalization to more than $943 billion. Analysts now expect that the Bitcoin price will start targeting the all-time high of almost $65,000.
Litecoin is also rising because of the overall weaker US dollar. The dollar index declined by more than 0.20% as fears of the new Covid wave eased.
The four-hour chart shows that the LTC price is trading at $187.82. The price previously struggled to move above this level a few weeks ago. As such, it also seems like it has formed a double-top pattern. A double-top pattern is usually a bearish sign. It is still above the 25-day and 50-day moving averages while the MACD has continued to rise.
Therefore, while the bullish trend is likely to continue, there is a possibility that it will have a major pullback because of the double-top pattern. Nonetheless, a move above $195 will signal that there are more buyers in the market.