Daily News | LTC Gains 15% Amid BTC Network Congestion; Ledger Controversy Continues; Nasdaq 100 Sets New Record

2023-05-19, 01:53

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## Crypto Daily Digest: Litecoin Rallies 15% Amid Bitcoin Network Congestion, Ledger Faces Backlash Over Key Extraction Controversy

<a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> (BTC) and Ether (ETH) experienced downward trends, with BTC dropping below $26,845 and ETH to around $1,800. The overall crypto market cap. declined by 1.48%.

In trending news, <a href="/price/litecoin-ltc" target="_blank" class="blog_inner_link">Litecoin</a> (LTC) rallied 15% over the past week, reaching a one-month high of $95. It is now the second-best performing digital asset with a market capitalization of at least $1 billion. <a href="/price/litecoin-ltc" target="_blank" class="blog_inner_link">Litecoin</a> benefited from the recent congestion on the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> network as traders sought cheaper alternatives. However, its price may decline as network congestion eases and historical data suggests a dominant selling trend leading up to <a href="/price/litecoin-ltc" target="_blank" class="blog_inner_link">Litecoin</a>'s mining reward halving.

On the other hand, crypto wallet maker Ledger continued to face backlash after a now-deleted tweet suggested it could extract users' keys. The company clarified that it cannot extract keys without user approval. Ledger's optional recovery service, criticized for undermining privacy and security, allows users to backup their seed recovery phrase with third parties. Despite controversy, some individuals expressed confidence in Ledger's commitment to security and customer service.

## Bitcoin (BTC) $26874 (+0.19%) - Neutral Outlook

![](https://gimg2.gateimg.com/image/article/1684461152Untitled0519 1.png)

![](https://gimg2.gateimg.com/image/article/1684461165Untitled0519 2.png)

The accumulation structure within the one-hour timeframe has concluded with a significant decline that surpassed the Spring zone (26635 - 26545). It is possible that the low point of this new decline marks the beginning of another accumulation structure. However, we cannot confirm this until we observe how the price reacts when it revisits the new one-hour Selling Climax (SC) zone, which is expected to be between 26488-26358. This revisit should serve as a secondary test before the price potentially retraces back to the newly formed Spring zone (26845-26735). Following that, there may be another retest of the SC zone. Meanwhile, on the four-hour timeframe, the accumulation structure is still ongoing, as the projections have been mostly accurate throughout this week.

**Overview:**

- ***Closest hourly support zone: 26790 - 26570***
- ***Closest hourly resistance zone: 27080 - 27262***
- ***Key Level: 26285 (Weekly Close between Dec. 21-28, 2020)***

<br>**Hourly Resistance zones**

1. 27080 - 27262
2. 27420 - 27540
3. 27670 - 27790

<br> **Hourly Support zones**

1. 26790 - 26570
2. 26380 - 26120
3. 25900 - 25818

## Macro: China Concerns Weigh on Asian Markets, US Debt Talks Boost Stocks, Dollar Strengthens

Stocks received a boost from progress in US debt-ceiling talks, but Asian markets remained cautious due to concerns about China's economic slowdown. Japanese shares were poised for their strongest week in months, while Australia's benchmark saw modest gains. Conversely, Hong Kong's market faced a decline amid disappointing sales from Alibaba, reflecting challenges in China's recovery. Bond yields in Australia and New Zealand rose, while the dollar strengthened.

In the US, the Nasdaq 100 led the rally, reaching its highest level in over a year. House Speaker Kevin McCarthy and Senate Majority Leader Chuck Schumer planned to vote on a bipartisan agreement to prevent a US debt default. Meanwhile, the Bank of Japan was not expected to implement immediate policy changes, impacting the value of the yen. The risk-on sentiment benefited commodities, particularly oil.

Traders increased their speculation on a central bank rate hike in June, though conflicting views from Federal Reserve officials introduced uncertainty. Additionally, approximately $1.7 trillion worth of derivatives contracts tied to stocks and indexes were set to expire, potentially leading to increased price volatility.

<div class="blog-details-info">
<div>Author:** Peter L. **, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>