Bitcoin prices have been trading broadly sideways throughout the last week. According to some analysts, that’s a pattern that shows no sign of abating any-time soon. Meanwhile, Litecoin prices have soared over the same period.
According to technical analysis, a bullish breakout could see prices pushed to $8,500. However, there are few signs of an imminent resurgence in trading.
The news comes at a time of altogether more robust fortunes for litecoin. The bitcoin alternative has been rallying for several days as bulls have sent prices soaring to their highest levels since May 2018.
However, Omkar Godbole, an analyst at Coindesk, urged caution for investors in both markets. Citing the potential for stagnant or a reversal of market momentum, Godbole stated:
“Bitcoin’s price consolidation in a tight range continues for the eighth day, as litecoin rallies to its highest level since May 2018. BTC’s 4-hour chart shows $8,053 is the level to beat for the bulls. A high-volume break higher could be followed by a rise to $8,500. LTC looks set to extend its recent rally as per the 3-day chart. LTC already rallied more than 100 percent in the last six weeks, so a pullback to $120 could be seen before further gains.”
Litecoin in particular has seen 6.5% gains over the last 24 hours. That bucks a trend seen right across the crypto board, which has broadly followed movements in BTC.
At current prices, LTC is up 40% on the week. By contrast, BTC grew by 4% over the same period. Godbole suggested LTC is leading the path for a stronger BTC rally over the coming months. Notably, the pending mining reward halving due on August 8 is expected to prop up prices.
“Litecoin, however, is flashing 6.5 percent gains on a 24-hour basis, according to CoinMarketCap. The fourth largest cryptocurrency by market capitalization rose to $141 on Bitstamp earlier today, the highest level since May 2018.”
“With the mining reward halving due on Aug. 8 – a process that could lead to a supply deficit and a resultant upwards pressure on prices – LTC is again leading BTC higher.”