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Litecoin [LTC] Technical Analysis: Bears retain long-term control of the LTC market

Jibin M George

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Litecoin [LTC] Technical Analysis: Bears retain long-term control of the LTC market
Source: Pixabay

Cryptocurrencies around the world have taken a tumble of late, especially since January 10, and the case of Litecoin [LTC] is no different. LTC has been going through a regular downslide since the heights of the previous year and despite some bullish resistance, is struggling to improve on its value against the US dollar which stands at $31.83 presently.

At the time of press, LTC retained its eighth-position in the list of world’s largest cryptocurrencies with a market capitalization of $1.914 billion. It also has a 24-hour trading volume of $602.28 million with ZB.com, contributing a significant 7.98% via the trading pair LTC/USDT.

1-hour

Source: TradingView

Source: TradingView

The uptrend for LTC in the one-hour time frame is struggling to hold and extends from $31.071 to $32.049. However, there is still some way to go before LTC overhauls the downtrend that extended from $33.375 to $31.179. Both the resistance and support points are holding steady at $32.479 and $30.897 respectively.

The Bollinger Bands are holding steady after it seemed that they were contracting. This suggests that volatility is holding steady for the time being.

The Aroon indicator has the Aroon up line cross and go over the Aroon down line and is thus, closer to 100, indicating that some bullish resistance has overpowered the predominant bearish trend of the market for the time being.

The Relative Strength Index indicator has the trading market neither being oversold or overbought, suggesting that both the buying and selling pressures have evened themselves out.

1-day

Source: TradingView

Source: TradingView

The long-term chart for LTC gives a more bleak reflection of the fortunes of LTC. The bearish market dominates trends as the coin is yet to reverse the huge downtrend that extended from $89.180 in mid-July last year to $40.155 last week. The uptrend extended from $29.304 to $40.079, but it was brief and has since dissipated.

Both the resistance and support points at $40.203 and $23.422 respectively, have also held firm against bullish and bearish market pressures.

The Parabolic SAR has all the markers above the candlesticks, indicating that the brief bullish resistance has been snuffed out and that the bears have retained overwhelming long-term control of the market.

The MACD line has the signal line hovering under the MACD line, indicating a bearish market. However, the histogram would suggest otherwise which means that gradually, the bearish trend is flattening thanks to bullish influence.

The Chaikin Money Flow indicates that the market is trending below the point of zero, suggesting that money is still trickling out of the market and that it remains a bearish market despite bullish efforts to the contrary.



Conclusion

The one-hour chart suggests a minor bullish trend to LTC’s prices, as is suggested by indicators such as Bollinger Bands, Aroon and RSI. On the other hand, the long-term, one-day chart suggests a bleaker market with the bears still retaining control over much of the Litecoin [LTC] market.





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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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