Litecoin (LTC) is still trending down like the rest of the cryptocurrency market, but one thing that sets the altcoin apart from the rest is its clear bullish case. Unlike the rest of the market, Litecoin appears primed for another rally that could be fueled by the upcoming halving.
Litecoin halving presents a bullish scenario
Like Bitcoin, Litecoin is halved every four years, reducing the block reward by 50%. The goal of the halving is to reduce the amount of new supply entering the market. As demand increases, the supply to meet that demand decreases, leading to shortages and higher prices.
The next Litecoin halving is now just around the corner, with only about three months to go. Like previous halvings, this one also brings with it the promise of a Crypto asset rebound. During the last half of 2019, the LTC price bottomed out around $62 before rising to local highs of $80 during the same month.
If this year’s halving is in line with this trend, the Crypto asset should see some gains in the coming months. This could lead to another breakout of the $100 level for LTC as investors prepare for their next leg.
At this point, a 20% increase could be achieved, especially with the halving expected to happen in early August. Therefore, buyers are likely to dominate the market for the next two months, which will lead to an increase in Litecoin price.
LTC outlook for 2023
Currently, the cryptocurrency market is experiencing modest momentum as investors remain hesitant. The next halving remains a bullish event for Litecoin, but given historical performance, the outlook for the months after the halving event is not optimistic.
After each halving, LTC’s sentiment reversed after an initial uptick, followed by a more brutal downtrend than the uptrend. For example, in 2019, the price of LTC plummeted by nearly 50% in September, a month after the halving was completed. This is because the bull market has not yet started and the cryptocurrency is once again in line with the rest of the market.
Looking at historical performance, the best time to take profits appears to be at the end of August after the asset has risen by around 30%. The window of opportunity closes in September, which has historically been a bearish month for crypto.
At the time of writing, LTC is trading at $87.11, up 3.22% over the past day.
Source of information: Compiled by 0x Information from CRIPTOMONEDA.The copyright belongs to the author Brian, and shall not be reproduced without permission