Litecoin Price Nears 600% Returns, But Beware of the Potential 73% Pre-Halving Plummet
Throughout most of 2019, Litecoin – the cryptocurrency forked from Bitcoin’s codebase by former Google programmer Charlie Lee – has led the entire crypto space out of the depths of the longest bear market on record. Much of the bullish sentiment surrounding Litecoin price is being driven by pre-halving speculation. Profit-hungry crypto investors have been buying up Litecoin ahead of a potential price increase.
But with Litecoin’s halving less than 60 days away, and with the asset nearing 600% returns for investors who boldly took a risk and bought the bottom back in December in anticipation of the pre-halving pump, the rally may soon be running out of steam. One crypto analyst believes that Litecoin price still has room to climb, but has issued an ominous warning that a potential 73% drop could be ahead in the coming days.
Crypto Trader Expects LTC/BTC Ratio to Hit 0.034 In Pre-Halving Spike
Litecoin often leads the crypto market. And ahead of its halving, most of the crypto community has considered the silver to Bitcoin’s digital gold to be a “no brainer” of an investment.
Each halving reduces the block reward miners receive for validating the blockchain. Come this August, the amount of LTC miners receive will be reduced from 25 LTC – approximately $3,475 at current prices – to 12.5 LTC, also reducing the USD equivalent value miners receive for the same amount of effort.
The abrupt shift in the balance of supply and demand, investors believe, creates an increase in price that often gets front run.
That front-running has helped take the price of Litecoin from a bear market low of near $20 to a 600% return as the price nears $140 in the LTC/USD trading pair.
In the LTC/BTC pair, one prominent crypto analyst believes a massive, multi-month cup and handle formation will take the ratio to a target of 0.34 once the formation confirms. If Bitcoin price stays around $8,000, this would bring Litecoin price to roughly $270. If Bitcoin is to climb higher alongside Litecoin while it surges even higher on the ratio, Litecoin could potentially paint new all-time highs in USD value.
10 Days Left of Litecoin Price Pump, Secure Profits Ahead of 73% Drop
If the halving truly was already front run as many crypto investors believe, risk increases by the day that the earliest buyers will begin securing profits, which will stop the rally dead in its tracks and cause a powerful correction.
The same crypto analyst that has lofty price targets for LTC/USD and LTC/BTC and has been accurate in his predictions thus far, believes there are only 10 days left in the rally before the tides sharply turn.
According to the last Litecoin halving back in 2015, the final days leading up to the halving caused Litecoin to absolutely moon, doubling in value relative to Bitcoin. Immediately after buyers began taking profits, Litecoin price fell 73%, as early investors dumped on those FOMOing in too late.
That dump occurred 45 days ahead of Litecoin’s last halving. The next halving is in less than 55 days. When will you secure Litecoin pre-halving profits? Or will you be left holding a bag?
Litecoin Project Developers Plan To Add Mimblewimble Support To Its Network
Charlie Lee, founder and executive director of the Litecoin Foundation, announced yesterday that the Litecoin project intended to add MimbleWimble support to its network, and would associate with David Burkett, a major Grin ++ developer for this purpose. Earlier in the last month, Lee had stated that Litecoin developers were interested in the implementation of Mimblewimble and that they are working to develop it further. A Grin developer had also joined the Litecoin project team to work on the implementation. This announcement comes a month later on Twitter clearing the air about the progress of the project, which was initially developing at a snail’s pace.
This was one of the primary reasons why Burkett was added to the team, that is for speedy development of the project. It is believed that he voluntarily and actively decided to offer his services after the slow progress of the project was talked about. In his words,
I’m just a crypto-anarchist who happens to spend his spare time developing o alternate node and wallet for Grin. My ultimate goal is financial privacy for everyone, and I would love nothing more than to see Mimblewimble on Bitcoin itself. Getting MW added to Litecoin seemed like the obvious next step.
Mimblewimble is a protocol change (does not use Bitcoin’s original “open-sourced protocol”, with its underlying codes altered) that allows “confidential transactions” and “non-interactive coin joints”, and thus, provides a number of added benefits. Confidential transactions primarily imply that the transaction values of customers who would use MW on Litecoin would be concealed and would be difficult to track by third parties as they would be mixed among other participants on the network. Thus this would also render the tracing of and logging the activity of these users arduous. Grin ++ is a variant of Mimblewimble’s original protocol Grin, with a greater focus on “speed, reliability, security, modularity, and scalability alongside the main upstream branch”.
Lee had also asserted that Mimblewimble would not replace the original or base protocol but possibly would be added as an extension block akin to a sidechain. However, in this case, it would be attached to the main chain and miners would have to mine the main chain as well as the extension block at the same time. If the soft fork (variant) follows this and is activated, the miner will have to mine both the main and extension blocks or else an invalid block would be created. He also said, brushing aside common contentions that implementation of Mimblewimble would harm Litecoin’s adoption, that the general response to Mimblewimble was far from negative as “people really like fungibility and privacy”.
Albeit all skepticism that this implementation might have an adverse impact on the cryptocurrency’s potential adoption (as Litecoin might be delisted by crypto exchanges), Lee has offered a donation of 1.5 Bitcoin to the security audit of Grin ++ as a token of support to all the developers behind Mimblewimble as well as in exchange of Burkett’s contribution in particular to the protocol.
Litecoin Exhibits 4% Hike in the Intraday Trading
Litecoin price is hooked with an uptrend from the past few days. However, intraday traders might experience a mixed day altogether. There is also a possibility for LTC to close the day with a negative number too. Still, the currency is giving positive indications of having a great future. The traders interested in LTC should dig-in without any second thought as it wouldn’t go futile.
Litecoin Price Analysis
Yesterday, LTC started the day with an upside movement. Litecoin price escalated by 2.32% and counters switched from $70.326 to $71.958. The price started slipping since then and touched a low at $69.719. Further, LTC price picked up and reached $71.054 by 1.90%. The hike continued the march and went up to $74.011 by 4.16%. The day closed above $73 with an intraday progression of 4.14%. Today, the currency might be seen dealing around the same level. The day started at $73 and is now trading at $72.610.
LTC to USD Price Chart
The data feed is gathered from Biftinex on September 17, 2019, at 04:07:45 UTC.
The statistics of Litecoin tells us that the Market Cap is at $4,591,286,038. The 24-hour volume stands at $2,567,795,413. The ROI is noted at 1587.61%. The data seems less impressive for now, but the currency could have a great future ahead. There are speculations that Litecoin will prove to be the biggest competitor of Bitcoin (BTC) in the coming years.
Litecoin is anticipated to cross its 30-Day high value of $78.51 by the year-end. Litecoin would go best with long-term traders. The specified time frame would bring a colossal profit to them.
Litecoin Fractal Hints Bitcoin Price May Soon Tumble to $8,300
Over the past few weeks, Bitcoin has entered into a lull, finding itself in a defined range between $9,500 and $11,500 and experiencing the motions of consolidation: declining volumes, few price spikes or drops, and a broad sentiment of indirection and indecision.
As reported by Ethereum World News, this massive lull has resulted in Bitcoin’s volatility index reading on BitMEX falling to a zone “where massive price moves are born”, as analyst Chonis put it.
Indeed, per this writer’s analysis of the metric, Bitcoin volatility is at a point not seen since two weeks prior to that one fateful day in April, which saw Bitcoin experience 20% explosion from $4,000 to $5,000. The metric is also as low as it was just days before Bitcoin plunged from the $6,000 cliff to the $3,000 bottom in late-2018.
But the question remains — in which direction will BTC decide to head in?
One eerily accurate fractal suggests a falling Bitcoin.
Fractal Suggests $2,000 Bitcoin Collapse
Capo of Crypto, an up-and-coming analyst, recently pointed out that Litecoin’s price action from late-2017 to late-2018 is hinting that the Bitcoin price may be poised to plunge. He pointed out in a recent tweet that Litecoin’s chart and Bitcoin’s chart look eerily accurate, with both sporting a descending triangle, multiple retests of the same bottom, and the testing of key Fibonacci Retracement levels.
If Bitcoin is to follow Litecoin’s price action in full, BTC could visit by $8,300 by the end of the month, marking a $2,000 (just under 20%) drop from current levels.
This isn’t a crazy theory? Just look at the two charts, which look structurally very similar.
This isn’t the only sign showing that bears may soon manage to wrest the control of the market from bulls.
Committing to the short-term bear, long-term bull persona, renowned analyst Dave the Wave recently noted that the $7,000 price level is still in reach for Bitcoin, with BTC’s relative strength index (RSI) reading still being relatively lofty compared to historical “bull market corrections”.
Bulls Still In Control
Despite this, there are still optimists.
Over the past few months, Bitcoin has found itself trading in a clear triangle, seeing higher lows and lower highs. While some have taken this as a bearish sign—consistently lower highs could be seen as a loss of bullish momentum—well-known analyst Jacob Canfield notes that per a study from Bulkwoski, descending triangles in an uptrend break upward 63% of the time.
The sentiment and fundamentals seem to be on the side of bulls. According to a recent impromptu poll of 4,000 cryptocurrency traders on Twitter by analyst Josh Rager, a majority — just around 60% — believe that Bitcoin will break above the triangle. And on the fundamental side, Bakkt is poised to launch its Bitcoin futures contracts to the world.