Is Litecoin about to EXPLODE? This happened last LTC halving
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In my previous analysis, I talked about the extremely bullish Cup&Handle formation on Litecoin, which has been confirmed at 100$ and since LTC has held that level as support now, we could be in for a bigger move up. However, today we will be talking about something else, but maybe very related to the pattern.
For those unfamiliar with the term halving, it is an event that occurs every now and then among different minable cryptocurrencies, such as Bitcoin, Ethereum, Litecoin. At the event, the mining rewards are cut, meaning less coins are being produced (instead of 25 LTC, miners will now be rewarded half that, 12.5).
This usually has an effect on price; first when everyone is talking about how it will effect the price (usually followed by a dump - buy the rumour sell the news), and secondly after the dust is settled when it shows its actual impact. The next LTC halving is only 2 months away, while the last one took place 4 years ago, in August 2015.
As you can see from the chart, in June 2015 the price of Litecoin stood at exactly 2$. Just a month later, in the first week of July, it surged all the way up to 5$ (150% gain) with a wick going up to 9$, which is 350% higher than the starting point. It then dropped as halving was approaching and consolidated for a while before starting a crazy bull run with the top being just under 400$.
Now, I do not claim that we will see something like this as 150% up from here would bring LTC price extremely high, however, it is important and interesting to see what happened during the last halving and what could potentially, especially if the cup&handle pattern plays out, come into being in the Litecoin markets.
Please leave a comment below as I would love to hear your thoughts. If you like these posts make sure to like them so I know I should do more of them :)
For those unfamiliar with the term halving, it is an event that occurs every now and then among different minable cryptocurrencies, such as Bitcoin, Ethereum, Litecoin. At the event, the mining rewards are cut, meaning less coins are being produced (instead of 25 LTC, miners will now be rewarded half that, 12.5).
This usually has an effect on price; first when everyone is talking about how it will effect the price (usually followed by a dump - buy the rumour sell the news), and secondly after the dust is settled when it shows its actual impact. The next LTC halving is only 2 months away, while the last one took place 4 years ago, in August 2015.
As you can see from the chart, in June 2015 the price of Litecoin stood at exactly 2$. Just a month later, in the first week of July, it surged all the way up to 5$ (150% gain) with a wick going up to 9$, which is 350% higher than the starting point. It then dropped as halving was approaching and consolidated for a while before starting a crazy bull run with the top being just under 400$.
Now, I do not claim that we will see something like this as 150% up from here would bring LTC price extremely high, however, it is important and interesting to see what happened during the last halving and what could potentially, especially if the cup&handle pattern plays out, come into being in the Litecoin markets.
Please leave a comment below as I would love to hear your thoughts. If you like these posts make sure to like them so I know I should do more of them :)
Nota
We managed to break out of the 120$ resistance, I will be looking for targets at 145dlr and 170dlr, which is my ultimate cup&handle pattern target as well. Price should not fall under 105$ anymore, however if you have entered this trade with my breakout entry at 100$ you are sitting in almost 30% profit and can start profit taking soon :)
Nota
WOW!! Up 40% from our entry now, LTC has really been an MVP lately. I exited about half of my position to secure profits at 140$, but will be looking for further targets as if BTC rallies then LTC could easily hit our highest target of 170$.I will be collecting profits along the way but will also let some of my investment in so I don't miss any insane moves to the upside.
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