Home CryptocurrencyAnalysis The bullish case for Litecoin grows as LTC halving approaches

The bullish case for Litecoin grows as LTC halving approaches

by SuperiorInvest

Litecoin (LTC) is still trending down like the rest of the cryptocurrency market, but one thing that separates altcoins from the rest is its apparent bull case. Unlike the rest of the market, Litecoin seems poised for another rally that will likely propel the next halve forward.

Litecoin Halving presents a bullish scenario

Like Bitcoin, Litecoin halves every four years, reducing block rewards by 50%. The goal of this halving is to reduce the amount of new supply flowing into the market. And as demand increases, there is less supply to meet that demand, leading to shortages and skyrocketing prices.

The next Litecoin halving is now around the corner and only about three months away. This halving, like previous ones, brings the same promise of a rally for digital assets. The last halving in 2019 saw LTC hit a low of around $62 before rising to a local high of $80 in the same month.

LTC halving will happen in August | Source: Nicehash

If this year’s halving stays true to that trend, then the digital asset should see some upside in the coming months. This could see LTC clear the $100 level again as investors prepare for further action.

A 20% increase is achievable at the moment, especially with the expected halving in early August. So, it is more than likely that buyers will dominate the market in the next two months, which will lead to an increase in Litecoin prices.

LTC outlook for 2023

Currently, the crypto market is experiencing muted momentum as investors remain undecided. The upcoming halving remains a bullish event for Litecoin, but the outlook for the months after the halving event does not look good given historical performance.

Litecoin price chart from TradingView.com

Previous performance paint bull case for LTC | Source: LTCUSD on TradingView.com

After each halving, LTC saw a reversal in sentiment after the initial rally, with the subsequent falls being more brutal than the uptrends. For example, in 2019, the price of LTC fell by almost 50% in the month of September, a month after the halving was completed. This was because the bull market was yet to begin and the cryptocurrency once again fell into close contact with the rest of the market.

Based on this historical performance, it would appear that the best time to take profits would be at the end of August after assets have risen around 30%. The window of opportunity closes with September, which has historically been a bearish month for cryptocurrencies.

At the time of writing, LTC is trading at $87.11, up 3.22% in the last day.

Follow Best Owie on Twitter for market stats, updates and the occasional witty tweet… Featured image from iStock, chart from TradingView.com

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