While Bakkt’s Bitcoin futures are here, the crypto market has been struggling. Litecoin, the fifth-largest cryptocurrency market capitalization, fell off a proverbial cliff earlier this hour.
As of the time of writing this article, Litecoin is trading at $66.75, having lost 8% in the past 24 hours. Bitcoin, for some perspective, is down 2.5%.
This flash crash comes after LTC saw strong trading sessions last week, benefiting from the micro “altseason” that took place.
Litecoin, Not Dead Just Yet
While Litecoin is clearly suffering, having lost the support of multiple moving averages and with technical indicators flipping negative, it purportedly isn’t dead yet.
The analyst below recently laid out the bull case for the altcoin. He notes that LTC remains above its 50-week moving average, which is important in determining long-term macro trends, and that it has broken to the upside of a descending wedge, implying the potential for a recovery.
Litecoin hovering around 50 week moving average for the last month and testing upper trendline of falling wedge
That’s not all. Analysts have argued that the recent overall rally for altcoins — or the drop in Bitcoin dominance — has yet to come to a conclusion.
Altcoins, in General, Still Bullish
Speaking to Bloomberg, Scott Freeman, a co-founder of the crypto-centric financial services firm JST Capital, said that “altcoins will continue to catch up”.
He specifically cited the fact that with the “technologies are now being adopted”, alternative blockchains will be able to solve “real problems”, creating a value proposition and investment thesis.
Han Kao, the CEO of Crypto Briefing, echoed this analysis. In his own comment to the outlet, Kao remarked that while he doesn’t expect a 2017-like move in altcoins, projects that “begin to demonstrate clear use-cases and adoption” will “start reclaiming a larger portion of investor attention”.
The technicals are in the favor of altcoins too. Prominent trader Dave the Wave noted that the Moving Average Convergence Divergence trend indicator on BTC dominance’s one-week trend has started to roll over, implying a loss of steam of Bitcoin against altcoins.
That’s not all. As trader Crypto Birb points out, the altcoin market capitalization chart looks eerily like the “Wall Street Cheat Sheet” cycle diagram that has become somewhat of a rallying cry for Bitcoin and altcoin bulls alike. Should the diagram play out in reality, altcoins will begin to push higher into the end of the year, potentially doubling across the board by year’s end, per Birb’s pseudo-prediction.