Bitcoin’s Rally to $52k Instigates Surge on Large Cap Altcoins
Flagship cryptocurrency, Bitcoin topped out at $52k on Sept. 6 following an impressive rally. Before the rally, the $51k resistance zone proved too difficult for the top crypto asset to cross. Now that its price has surmounted that zone, other altcoins such as Litecoin (LTC), Bitcoin Cash (BCH) and Stellar (XLM) have responded to the momentum generated by Bitcoin to register varying increases in their prices.
After crossing the resistance, market observers had predicted that if Bitcoin turns it to a support, we could see a leap to new heights, even past its all-time high of $65k. Bitcoin’s dominance over the crypto market has remained unchallenged since its creation, not going below 40%.
Bitcoin Reigns Supreme, Retains Dominance on Market
Its supremacy was proven true in the wake of a general uptrend as the new month progresses. In light of this, we will have a look at how well Litecoin, Bitcoin Cash and Stellar- all large-cap altcoins- have performed this week.
Litecoin is often spruiked as a digital sibling to Bitcoin as it is a fork of the flagship cryptocurrency and has been reported to correlate with it in terms of price movement- little wonder Bitcoin’s move triggered a similar move on Litecoin on Monday.
However, Litecoin’s protocol differs from Bitcoin’s in block time and supply. While Bitcoin’s network confirmation time takes 10 minutes, Litecoin’s takes half the time to get transactions confirmed. The supply cap of Bitcoin is 21 million as against Litecoin’s 84 million overall supply.
Available data shows that Bitcoin Silver, another name for the altcoin, had plunged to a low of $165 by the end of August. Benefiting from the market-wide rally spearheaded by Bitcoin, which has reached above $52k, Litecoin leapt by 41% to a daily high of $233, which is still a 3-month high for the altcoin.
What is expected of the altcoin is if it would make a move further to the upside relying on its fundamentals or wait for Bitcoin to cross $52k before picking up speed as well.
Bitcoin Cash Gains 30% Following Monday Rally
Bitcoin cash (BCH) is also a fork of Bitcoin, emerging during the bull cycle between 2017 and 2018 to improve on the alleged deficiencies of Bitcoin’s protocol.
Joining other altcoins to capitalize on the recent rally, BCH increased by 30% to $806 on Monday. This was after declining to $607 just like Litecoin by late August. The altcoin has formed a bullish cup and handle pattern, suggesting that it is yet to exhaust the momentum it began with at the start of the week.
Meanwhile, Stellar (XLM) emerged in 2017 as well after developer Jed McCaleb left Ripple. Starting as a project with a similar design to Ripple, Stellar would carve a niche for itself, becoming a top choice for firms and countries looking to roll out stablecoins and CBDCs due to its low-cost and scalable feature.
Data observed shows that XLM had bottomed at $0.324 on August 31st before surging 29% to $0.24 on September 6. Largest altcoin by market cap, Ethereum is unresponsive to the rally, refusing to go beyond the $3,900 range.
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