Litecoin Lights Path To Crypto Market Bottom, Halving Nothing but Hype

Tony "The Bull" Severino

1 year ago

3 mins read

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Litecoin, the silver to Bitcoin’s digital gold, is often a leading indicator for the rest of the cryptocurrency market.

However, if Bitcoin and the rest of the crypto market continues to follow Litecoin’s lead, the entire market could be headed toward a double-bottom or lower, and it could even suggest that Bitcoin’s halving will nothing but hype.

Litecoin Leads Crypto Market Toward Double Bottom

Again and again, Litecoin has shown signs that it is regularly the leading indicator for the entire cryptocurrency market, and where Litecoin goes, the rest of the market tends to follow.

Such was the case at the start of 2019 when Litecoin reached a low of $20. Litecoin’s halving at that point was just a mere few months away, similar to the distance Bitcoin is from its scheduled halving this coming May.

The pre-halving hype caused the price of the crypto asset to rise over 600% to a high of $145 per LTC before the asset topped out once again, and reversed back into a downtrend. Litecoin is now trading at roughly $43, over $100 less than it was just a few months ago – prior to the asset’s halving.

With Litecoin a leading indicator for the market, and the crypto asset once again touching lows near where it broke out from its bottom trading range, it could signal that the rest of the crypto market will soon follow, including Bitcoin.

LTC Halving Hype Failed to Deliver Results, What About Bitcoin?

The lackluster response to Litecoin’s diminished block reward also could suggest that Bitcoin’s halving won’t have the impact that many crypto investors are expecting it to have, and any rally leading up to the event could be wiped out in a post-halving selloff – much like the case with Litecoin and its most recent halving.

Each halving, the block reward miners received is cut in half, throwing off the delicate balance of supply and demand. And because cryptocurrencies like Litecoin and Bitcoin are hard-coded and capped to be digitally scarce, the idea is that with less selling from miners flooding the market, buying overwhelms the available supply and the asset’s price skyrockets.

While this has happened in the past with Bitcoin, it very well could have been coincidental, and not related to the halving at all. Litecoin’s lack of price increase following its halving could indicate the halvings are little more than hype, and the perfect opportunity for whales to dump on retail investors who are blinded by the narrative.

Crypto investors will find out soon enough, as Bitcoin‘s halving is set for this coming May 2020.

Featured image from Shutterstock

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.