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Litecoin [LTC/USD] Technical Analysis: Constant battle between the bears and the bulls rages on

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Litecoin [LTC/USD] Technical Analysis: Constant battle between the bears and the bulls rages on
Source: Unsplash

Litecoin, the seventh-largest cryptocurrency in the world, has been gaining traction, after going on an adoption spree in the past few days. Restaurants in some parts of the US are now accepting LTC for their services and a game developed recently, Coindriod, uses Litecoin and other cryptocurrencies in-game to destroy bots.

At the time of press, the currency was trading at $52.26, with a market cap of $3.08 billion and a 24-hour trade volume of $369 million.

1-hour

Source: Trading View

There has been an acute uptrend in the one-hour trend starting from $49.52 to $51.54, while the downtrend has started to form and extends from $55.69 to $51.79. The short-term supports are formed at $50.38 and $49.47.

The Bollinger bands are in a state of expansion, indicating an addition of volatility in the market. The prices are falling below the EMA, indicating a bearish trend.

The Aroon up line has bottomed at the zero line, indicating that the uptrend has exhausted. The Aroon downline, however, has struck the top line more than a few times, indicating that the downtrend is dominating.

The RSI, just like the Aroon up line, has submerged to the bottom, indicating that the sellers are controlling the market i.e., the market is bearish.

1-day

Source: Trading View

The uptrend is small, but is starting to develop from $48.95 to $51.79. The downtrend spans over the range of $125 to $55.88. The prices recently broke the support at $50.55, leading to the creation of a new support at $48.55.

The resistances are holding steadily without any breaches. The immediate resistance is at $63.11, following which the successive resistances are setup at points $67.75, $88.99, and $101.11.

The Parabolic SAR markers are forming below the candlesticks, indicating an imminent bullish trend reversal.

The MACD indicator is showing a bullish trend due to the bullish crossover of the MACD line and the signal line. The MACD histogram is showing green bars, indicating the same.



The Awesome Oscillator shows a bearish crossover imminent as the spikes are starting to bud over the zero line in red.

Conclusion
The one-hour time frame is showing a rather bleak future for Litecoin as the Bollinger bands, RSI, AO, and Aroon all indicate an occurrence of a downtrend and bearish move. The SAR, MACD and the AO in the larger time frame are showing bullish signs, even though the prices seem to be dropping.





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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.

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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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