Bitcoin is slowly grinding upward through resistance levels:



Interestingly, Ethereum is declining in Bitcoin while remaining stable in USD:





Now look at Litecoin:





Bitcoin charts are showing volume levels after major price spikes as remaining elevated. Since the January 2015 low produced a high in volume, and the December 2015 high produced another high in volume, the trend has been down. However, that trend has breaking to the upside for the past couple of weeks. Meanwhile, Litecoin's volume downtrend since the 2013 high was broken in October 2016 and has been tentatively reversed thanks to the most recent spike.

We have capital flowing from USD into BTC, ETH, LTC, etc. We're also seeing ETH->BTC but it's then difficult to determine where funds are flowing. It could be moving from BTC to any number of other coins.

While I don't think it is a requirement that LTC rise to match BTC, your explanation is plausible and would result in capital movements similar to what we're seeing - large hodlers shifting positions.

I doubt we'll have to wait more than a few weeks to start seeing some movements, but it may be a few months before the primary upward trend resumes with strength - potentially as an inflection point of the expected phase transition.