The Litecoin $95 Question: Is A Bullish Breakout In The Pipeline?

Christian Encila

2 years ago

3 mins read

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Litecoin (LTC) is facing a critical juncture in its price surge, with its value hovering just above $89.52 on CoinGecko, showcasing a modest 0.3% increase in the last 24 hours. However, LTC has endured a slump of 3.6% over the past seven days.

As the price continues to hover below the crucial resistance level of $95, investors are wondering if the muted performance of Bitcoin (BTC) will hinder LTC’s upward trajectory. Furthermore, all eyes are on the upcoming August halving event to determine if it will catalyze significant price action.

Source: Coingecko

Understanding Litecoin Halving

In the context of cryptocurrencies like Litecoin, a halving is a programmed event that occurs when a specific number of blocks are mined on the blockchain. Litecoin, similar to Bitcoin, has a fixed supply cap and new coins are introduced into the market through mining.

Source: Admiral Markets

Approximately every four years, the mining reward for each block is cut in half, reducing the rate at which new coins enter circulation. This process is known as “halving” and is intended to control inflation by gradually limiting the supply of new coins.

LTC’s price surge beyond $95 has encountered significant resistance, as this level had previously acted as support in early July. However, as BTC’s performance weakened, the support flipped to resistance, creating an obstacle to Litecoin’s advancement.

The fate of LTC’s price action remains closely intertwined with Bitcoin’s performance, as the latter serves as a bellwether for the broader cryptocurrency market.

Impact Of BTC’s Performance

Being the most dominant and influential cryptocurrency, Bitcoin often dictates the market’s direction. If BTC remains weak, with its price currently at $29,414 at CoinGecko, Litecoin’s ability to break past the immediate $95 resistance level could be hindered.

LTC market cap currently at $6.89 billion on the daily chart: TradingView.com

A retest of the 38.2% Fibonacci retracement level at $88 might be possible in such a scenario. On the other hand, a solid and decisive move by Bitcoin could have a positive knock-on effect on Litecoin, propelling it past the resistance and potentially sparking a more significant price rally.

As the Litecoin halving approaches, investors are speculating whether this event will drive a significant price surge. Historically, halvings have been associated with bull markets in cryptocurrencies, as the reduced supply of new coins can create a supply-demand imbalance, leading to higher prices.

However, it’s essential to recognize that the market’s sentiment, overall health, and broader macroeconomic factors also play crucial roles in determining price movements.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from PublishOx

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.