Connect with us

Analysis

Litecoin [LTC] Price Prediction: LTC is preparing itself for another major pump after a small dump

Avatar

Published

on

Litecoin: LTC is preparing itself for another major pump after a small dump
Source: Pixabay

Litecoin, unlike every other cryptocurrency, hasn’t been dumping. Instead, it has been on a rally since December 2018, causing the price to surge by a massive 170%.

The price and the coin’s technicals indicate a more bullish scenario for Litecoin in the future, owing to the formation of an ascending triangle.

Source: TradingView

As seen in the chart above, the price at press time hadn’t crossed the higher high [$61.25] formed on 16 March, 2019. Although the price did hit the $61.25 level multiple times, it did cross it, forming the top of the triangle. The price, however, has been forming higher lows since 4 March, 2019, creating a perfect ascending triangle pattern seen on the charts.

Source: TradingView

The Volume has been continuously declining across the pattern, giving it more credibility. Additionally, the Relative Strength Index [RSI] is close to hitting the resistance at 48. The assumption here is that the price would hit the strong resistance and bounce off, thus creating an opportunity for the rally.

Source: TradingView

The Fibonacci Retracement showed a 50% retracement for the previous rallies. Assuming the same, if Litecoin decides to dump, before going on another rally, the retracement could happen at $57, which also happens to be a strong support/resistance that LTC has supported since 2018.

Since the ascending triangle patterns are bullish in nature, a breakout to the upside could be expected. Although unlikely, if the price drops due to an unforeseeable event, it could retrace to a low of $57.

Speculation Train

Due to its rally over the last couple of months, it is speculated that Litecoin bottomed in December and that the bull rally has begun. Since Litecoin’s halving is just around the corner [August 06, 2019], the community speculates that this could be a key driver of the price.



Conclusion

The direction of any pattern’s breakout is uncertain and it can only be known after it actually occurs. Thus, it is better to be prepared for both outcomes. If the price dumps, the keys levels to be looking out for are $57.03, $52.04 and $39.65. However, if the price decides to go on a rally, the key range to look out for is between $68.87 and $62.84.





Subscribe to AMBCrypto’s Newsletter




Follow us on Telegram | Twitter | Facebook



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.

News

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

Avatar

Published

on

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.





Subscribe to AMBCrypto’s Newsletter


Continue Reading

Trending