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Litecoin [LTC] Price Analysis: Token exhibits bullish momentum as prospect of the bear looms

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Litecoin [LTC] Price Analysis: Silver token exhibits bullish momentum as prospect of the bear looms
Source: Unsplash

Litecoin [LTC] stands tall as the fourth-largest digital asset on the CoinMarketCap replacing EOS. The silver crypto coin was one of the best performers during the huge surge last weekend. LTC managed to successfully rally up against its resistance.

The digital coin opened at a high of $46.88, reached a low of $42.40 before closing down at a value of $43.18. The volume of LTC traded during the day accounted $1.3 billion.

During the last 24 hours, the pair LTC/BTC has been trending at four exchanges. The pair has been leading at OKEx sweeping a volume of $74.14 million, priced at $43.71. This was followed by Coineal, where the volume traded was registered at $62.04 million, valued at $43.72. The pair was trending third at Dobi Exchange with a volume of $61.93 million at $43.73. Additionally, LTC/BTC reposed at DigiFinex with a volume of $55.19 million at $43.75.

At the time of writing, LTC had been trending at a market cap of $1.3 billion, priced at $43.39. The volume of the digital coin being traded during the past 24 hours stood at $1.16 billion, with a slump of 2.16%.

1-hour:

Source: TradingView

LTC exhibited an upward trend from $33.42 to $43.04 and a downtrend from $46.48 breaking the resistance, then falling to $43.36 in the hourly chart. The resistance is marked at $43.95 and the support at $42.10.

Bollinger Bands: The converging BB suggests low volatility in the price momentum for the coin.

Awesome Oscillator: The lines turning red in AO indicator predicts a possible bearish pattern for the coin.

Chaikin Money Flow: The CMF graph is above the zero-line indicating the coin’s valuation entering a bullish zone.

1-day:

Source: TradingView

LTC showed an uptrend from $55.94 to $33.13 and a downtrend from $46.49 to $32.16. The resistance for the one-day chart has been recorded at $49.31 and that of support at $30.60.

Parabolic SAR: The dotted lines aligned below the candles predicts a bullish pattern for the coin’s valuation.

MACD indicator: The MACD line is above the signal line, further suggesting LTC following a bullish trend.

Klinger Oscillator: The KO indicator suggests a potential bearish cross-over.



Conclusion:

The AO in the hourly chart and KO in the one-day chart predicts the coin steering itself toward the bear zone, however, the CMF, Parabolic SAR and MACD indicator sides with the bull.





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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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