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Litecoin [LTC] Price Analysis: Bears seek to take control after coin posts major gains

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Litecoin [LTC] Price Analysis: Bear seeks to take control post major gain
Source: Pixabay

The fourth largest crypto asset on CoinMarketCap, Litecoin [LTC] recuperated over the week, breaching the $55 mark. The largest volume of LTC was traded on the Coineal exchange via the trading pair LTC/BTC for the third time this week. Its trading volume accounted for 6.44% of the coin’s 24-hour trading volume.

On 7 March, the silver crypto coin reached a high of $59.00 before falling to a low of $55.08.

At press time, LTC held a market cap of $3.45 billion with a 24-hour trading volume of $2.31 billion. The coin exhibited a slight decline of 0.83% against the US Dollar and was priced at $56.75.

1-hour

Source: TradingView

The hourly chart of LTC exhibited an uptrend from $46.28 to $55.76, along with a minor downtrend from $47.81 to $45.97. The resistance remained at the $65-mark while the the support held firm at $48.28.

Parabolic SAR: The dotted lines were aligned above the candlesticks, suggesting a bearish pattern for the coin’s price.

MACD: The MACD line was aligned below the reading line and depicted a bearish phase for the coin.

Chaikin Money Flow: The CMF graph was below the zero-line. This indicated that money was flowing out of the coin market and hence, a bearish trend was predicted for LTC.

1-day

Source: TradingView

The one-day chart for the coin registered an uptrend from $23.36 to $30.58 and a downtrend from $55.74 to $32.58. The immediate resistance was noted at $63.18, while the second resistance was marked at $67.72. The price was supported at $37.68.

Bollinger Bands: The mouth of the band was open after a price breakout. This indicated high volatility in the silver digital coin’s valuation.

Awesome Oscillator: The bars were found to be green, suggesting a bullish price momentum for LTC.

Klinger Oscillator: Post a bullish crossover, the reading line was treading above the signal line.



Conclusion

On the hourly chart, Parabolic SAR, MACD and CMF exhibited a bearish phase for the coin’s valuation. However, AO and KO projected the coin’s price to edge higher.





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Chayanika holds a Journalism degree and is currently working with AMBCrypto. She is inquisitive about everything that the Blockchain Technology has to offer.

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Bitcoin [BTC] Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021

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Bitcoin Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021
Source: Pixabay

With a year left for the highly anticipated Bitcoin [BTC] halving, many expect the price of the top-cryptocurrency to surge prior to May 2020. Analysts have previously opined that three months to one year before the halving does the price of the cryptocurrency move up.

A new piece of research from the cryptocurrency analytics firm, CoinMetrics, suggested that in addition to the precursor pump, Bitcoin [BTC] will reach its “local peak” 18 months after the halving.

 

CoinMetrics charts the price of the top coin, divided based on the 2012 and 2016 halving, showing a noticeable trend. A little more than a year after the first halving when the 210,001 block was mined, the price of Bitcoin surged above $1,000 for the first time, in December 2013 to be precise.

Next, During the July 2016 halving, the coin was trading at just above $600 and within the suggested period of 18 months, the top virtual currency saw its second peak. On 17 December, the coin reached a never-before-seen high of over $19,700 as the Chicago Futures exchanges embraced the digital assets market.

With the price of Bitcoin over $5,000 for the first time in over four months, and the precursor halving bulls on the horizon, the price could surge. Furthermore, based on CoinMetrics’ inference, Bitcoin will see its third peak, higher than $20,000, by the close of 2021, eighteen months after the May 2020 halving.

The halving protocol was placed in the original whitepaper to thwart inflationary pressure that would arise with more blocks mined and more Bitcoins supplied. Historical charts prove that this objective has been adhered to, with a constant drop in the inflation rate with the two previous halvings.

In 2012, the inflation was over 25 percent and immediately after the miner reward reduction to 25 BTC per block, it dropped to under 15 percent. A bracket between 7 percent and just under 20 percent sustained until the second halving in July 2016.

The second halving saw a decline in inflation rate to under 5 percent for the first time in the coin’s history, which has been maintained till today. CoinMetrics pegs the inflation, at press time, to be 3.8 percent. Furthermore, if the historic trend continues, the inflation rate would drop by more than 50 percent to 1.8 percent in May 2020.



Based on the current market and using a historical outlook, analysts suggested that 2019 will be the year of building the industry while the price effect will manifest next year, with the halving being at the very core. Many believe that institutional interest on the rise and the growing crypto-adoption surge could result in a bullish 2020.

Charlie Lee, BTCC’s co-founder suggested in December 2018 that Bitcoin’s next rally will begin in “late 2020”, months after the halving and would peak in December 2021 at 333,000. However, the precursor to this rise would be a January 2019 bottom of $2,500 which did not materialize.





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