Litecoin (LTC) is still bearish like the rest of the cryptocurrency markets, but the only thing that separates the altcoin from others is its clear bullish state. Unlike the rest of the markets, Litecoin seems poised for another rally which will likely be pushed forward by the next halving.
Litecoin halving presents a bullish scenario
Just like Bitcoin, the Litecoin halving takes place every four years and cuts rewards by 50%. The goal of this halving is to reduce the amount of new supply flowing into the market. As demand rises, supply decreases to meet that demand, leading to scarcity and higher prices.
The next halving of Litecoin is now approaching and there are only about three months left. This halving, like the one before it, holds the same promise for the rise of digital assets. The last halving in 2019 saw the price of LTC drop to around $62 and then climb to a local peak of $80 in the same month.
LTC halving will happen in August | Source: Nicehash
If this year’s halving remains in line with this trend, the digital asset should see some upside in the coming months. This could lead LTC to clear the $100 level again as investors prepare for the next takeoff.
A 20% uptick is achievable at this point, especially with the halving expected to happen in early August. So, most likely, buyers will dominate the market for the next couple of months, driving up the price of Litecoin.
LTC Predictions for 2023
Currently, the cryptocurrency market is witnessing a muted momentum as investors are still hesitating. For Litecoin, the upcoming halving remains a bullish event but the outlook for the months following the halving event does not look good given the historical performance.
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 and subsequent crashes were more brutal than bullish. For example in 2019, the LTC price collapsed by almost 50% in September, one month after the halving was completed. This was because the bull market had not started yet, and the cryptocurrency was again converging with the rest of the market.
Given this historical performance, it appears that the best time to take profits would be at the end of August after the asset rose about 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.