Litecoin (LTC) continues to be trending low like the remainder of the cryptocurrency market, however one factor that units the altcoin other than the remainder is the plain bullish case. Not like the remainder of the market, Litecoin seems set for an additional rally that’s more likely to be propelled ahead by the subsequent halving.
Litecoin Halving Presents Bullish State of affairs
Identical to Bitcoin, the Litecoin halving occurs each 4 years and reduces block rewards by 50%. The purpose of this halving is to scale back the quantity of recent provide flowing into the market. And when demand will increase, there’s much less provide to satisfy that demand, resulting in shortage and a rise in costs.
The subsequent Litecoin halving is now across the nook with solely about three months to go. This halving, like these earlier than it, carries the identical promise of a rally for the digital asset. The final halving of 2019 noticed LTC’s value backside out round $62 after which rise to a neighborhood peak of $80 in the identical month.
LTC halving will occur in August | Supply: Nicehash
If this 12 months’s halving stays true to this development, the digital asset ought to see some upside within the coming months. This might see LTC clear the $100 stage once more as buyers put together for the subsequent leg.
A 20% upside is achievable at this level, particularly with the halving anticipated to occur in early August. So, greater than doubtless, the patrons will dominate the marketplace for the subsequent two months, resulting in rising costs of Litecoin.
LTC Outlook for 2023
Presently, the crypto market is seeing muted momentum as buyers stay indecisive. For Litecoin, the upcoming halving continues to be a bullish occasion, however the outlook for the months after the halving occasion doesn’t look good given historic efficiency.
Earlier efficiency paint bull case for LTC | Supply: LTCUSD on TradingView.com
After every halving, LTC has seen a reversal in sentiment after the preliminary rise, and the following crashes have been extra brutal than the uptrends. For instance, in 2019, LTC’s value crashed nearly 50% within the month of September, one month after the halving was accomplished. This was as a result of the bull market had not but begun and the cryptocurrency fell again in lock with the remainder of the market once more.
Primarily based on this historic efficiency, it seems that the most effective time to take income will likely be in direction of the tip of August after the asset has risen round 30%. The window of alternative closes with the month of September, which has traditionally been a bearish month for cryptocurrencies.
On the time of writing, LTC is buying and selling at $87.11, up 3.22% within the final day.
