In a surprising turn of events, bankrupt cryptocurrency lending platform Celsius has announced that it will convert all of its altcoins to Bitcoin (BTC) and Ethereum (ETH) starting tomorrow. This move has sent a shock wave through the altcoin market, raising questions about the future of Litecoin (LTC) and Bitcoin Cash (BCH), which have recently experienced a price surge.
Altcoin Market May Face Turmoil
Judge Martin Glenn of the Southern District of New York approved Celsius’s proposal to convert non-BTC and non-ETH cryptocurrencies to BTC or ETH starting July 1, 2023. The decision, backed by the Securities and Exchange Commission (SEC), comes as the SEC recently classified several lesser-used crypto tokens as securities subject to regulatory approval.
Celsius’ holdings, including $70.5 million in CEL, $51.8 million in MATIC, $26.2 million in ADA, $17.3 million in LINK, $14.4 million in LTC and more, could put selling pressure exercise on the altcoin market, potentially destabilizing Litecoin and Bitcoin Cash prices.
Litecoin (LTC) price analysis
On Friday, Litecoin (LTC) crossed the significant $100 mark for the first time since mid-April. The week leading up to this price hike saw a notable increase in on-chain activity and social dominance within the altcoin network.
At the time of writing, the LTC price is trading at $96.43, up more than 14.12% in the past 24 hours. After witnessing a skyrocketing surge to $100, the LTC price has stabilized and dropped below multiple Fib channels. LTC price reached a low of nearly $89; however, bulls quickly took control and pushed the price above $95.
If bulls cannot keep the LTC price above USD 89, it could fall sharply and wipe out its recent gains by reaching the low at USD 71. On the bullish side, however, a rise above USD 103 will bolster bullish confidence, and the LTC price could see another skyrocketing surge.
Bitcoin Cash (BCH) price analysis
BCH price has experienced a long overdue bullish rally today after trading volume in South Korea surged. As of now, Bitcoin Cash is trading at $296, up more than 22% from yesterday’s price.
However, the SEC’s recent drop in BTF filings has led to a bearish rally for the price of BCH, sending the altcoin to a low of $272. Currently bears are trying to push the price below EMA20; if successful, BCH price could spark a solid bearish rally to a low below USD 150.
However, a rise above the crucial USD 324 resistance will intensify bullish dominance. As the RSI level is still hovering around the positive region of 73, bulls will increase buying pressure and the BCH price could quickly climb above $350.