The Litecoin price continued its bullish momentum as investors reflect on the latest Bitcoin Taproot upgrade. The LTC price is trading at $272, which is about 162% above the lowest level in July. It has also moved to the highest level since May 19th.
LTC and BTC correlation
Litecoin is one of the biggest blockchain projects in the world. The cryptocurrency was created in 2012 to help solve some of the biggest challenges that Bitcoin has. For example, it helps people send money to one another in a cheaper and secure manner.
In the past, Litecoin has been known for its close correlation with Bitcoin. This correlation means that the digital currency tends to move in sync with Bitcoin. Indeed, for so long, the correlation between Bitcoin and Litecoin has been close to 1.
The reason for the correlation has been relatively easy to understand. Because of their history, most investors tend to buy Litecoin in a bid to gain exposure to Bitcoin. This is because historically, LTC has been relatively cheaper than Bitcoin.
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Now, the Litecoin price is rising possibly because analysts expect that the Bitcoin price will keep rising in the near term. This is simply because of the recent Taproot upgrade. The upgrade will make Bitcoin more faster and secure.
They also believe that Litecoin has become relatively undervalued because of the recent price action. Indeed, the ratio between Bitcoin and Litecoin is currently at 241. This means that one Bitcoin can get you 241 Litecoins.
Meanwhile, the Litecoin price is rising as its hash rate keeps rising. Data compiled by BTC.com shows that the hash rate has jumped to the highest level since June this year. The same is true with its difficulty of mining.
Litecoin price prediction
The daily chart shows that the LTC price has been in a relatively tight range in the past few weeks. This range resulted in an ascending triangle pattern whose upper side was at $234. The coin has made a bullish breakout this week.
At the same time, it has moved above the 25-day and 50-day moving averages and is just about 54% above the current level.
Therefore, the Litecoin price will likely retest the YTD high as momentum builds after the bullish breakout.