2023 Crypto Rally Trader Issues Litecoin (LTC) Alert: Halving No Longer Drives Bull Market
A trader who capitalized on the early-year cryptocurrency surge reveals that he is refraining from engaging with Litecoin (LTC), despite the impending halving event of the peer-to-peer payments network, which is only a few weeks away.
Pseudonymous analyst DonAlt, with a significant following of 496,000 on Twitter, predicts that Litecoin may experience substantial corrective movements following the halving of miners' rewards on the blockchain. With LTC's third halving scheduled for August 2nd, DonAlt believes that this event is unlikely to drive Litecoin to achieve new highs in 2023. DonAlt shares a chart highlighting the impact of previous LTC halvings, emphasizing that the halving no longer serves as a bullish catalyst. Instead, it seems to be a drawback, particularly for those who purchased Litecoin in anticipation of significant gains. Despite this, DonAlt finds it perplexing that people continue to promote Litecoin just two weeks before the halving.
According to the crypto strategist, there are plans to accumulate Litecoin once more in 2026, foreseeing its fourth halving. The strategist states, "I intend to consider purchasing LTC again, possibly in three years." Analyzing the Litecoin versus Bitcoin (LTC/BTC) ratio, DonAlt observes a consistent trend where the pair has historically lost more than 80% of its value following each halving. DonAlt provides further evidence by sharing a chart depicting the performance of LTC vs. BTC after recent halvings.
At the time of writing, Litecoin is currently being traded at a price of $92.89. On the other hand, despite the emergence of several bullish news stories such as BlackRock's proposed spot-based BTC exchange-traded fund (ETF) and Ripple's significant legal victory against the U.S. Securities and Exchange Commission (SEC), DonAlt expresses concerns about the strength of Bitcoin itself. DonAlt suggests that while Bitcoin is currently supported at a daily level, making it challenging to be excessively bearish, he finds it difficult to be bullish considering the continuous positive news flow and the overall positive performance of traditional markets. DonAlt finds the price levels above $30,600 or around $27,000 to be interesting for shorter-term trading opportunities.
At time of writing, Bitcoin is worth $30,060.
Jul 20, 2023