Daily Litecoin Price Forecast: When LTC/BTC Ratio Corrects, Litecoin Can Reach $85.00
Investors that are new to cryptocurrencies might find it easier to think of Litecoin (LTC) as a parallel to precious metals. Rather than thinking of it as a mysterious digital asset, think of it as the “silver” to Bitcoin’s (BTC) “gold.” It is practical and commercial rather than a store-of-value, exactly like silver.
This relationship is old Litecoin news, but it serves as a healthy reminder that the Bitcoin price and Litecoin price travel as a pair.
Like gold and silver, there is a standard LTC/BTC ratio. Just to give you a sense of it, the last time that Bitcoin traded in the high $4,000 range, Litecoin was trading between $75.00 and $80.00.
That relationship doesn’t always stay in perfect harmony, though. It falls out of sync as the market evolves, leading to imbalances that investors can exploit for profit.
For example, Bitcoin recently breached the $5,000 level. It rallied more than eight percent on Thursday morning to reach $5,222.70 at the time of writing. This rally, in addition to several others from earlier in the week and the week before, were not shared by Litecoin.
There was no congruent growth in LTC prices. To be sure, the Litecoin-to-USD exchange rate rose 6.68% to $54.06, but it’s accumulated gains from the last two weeks are meager compared to Bitcoin’s.
Nowhere is this more evident that in Litecoin’s own price chart:
You can see LTC ascending relative to the greenback (marked by the green line), while simultaneously falling against Bitcoin (marked in yellow). The space between those lines is an opportunity for investors.
Investors that own Bitcoin could conceivably sell BTC tokens in exchange for Litecoin. LTC coins would then likely rise to $80.00 to $85.00. That would put them back in sync with Bitcoin prices.
We believe that LTC prices will experience a surge in the coming weeks, most likely after Bitcoin completes its hard fork. That event will rotate funds back into the altcoin market. At the same time, Litecoin will find its natural balance with Bitcoin. This will help push LTC towards our $200.00 Litecoin price forecast for 2018.