Litecoin (LTC) Poised to Break it’s Six Month Long Bear Channel
- Litecoin faces the “largest miner capitulation” ever
- Litecoin’s fundraising for Mimblewimble & Extension Block “going strong”
“I wouldn't be surprised if LTC to leads a bullish breakout of BTC,” said on-chain analyst Willy Woo. And by the looks of it, we might be coming to that point.
While Chainlink (LINK) with over 11% and Tezos (XTZ) with 9% gains in the past 24 hours have been leading the market, Litecoin has been up 6%, close behind Bitcoin (up 6.94%), to lead the top 10 cryptocurrencies.
In the past 7 days, LTC has risen 12.20% to $48. This has been because as Woo explained Litecoin Difficulty ribbon is in recovery which should set up a “bullish breakout of the bearish channel.”
The hash rate of the Litecoin network has been falling ever since hitting an all-time high at 523.8 Th/s in July 2019. In mid-Dec, the hash rate seems to have bottomed at 130 Th/s as it starts climbing back up, currently at 162 Th/s.
This could also mean Litecoin leading a bullish breakout of BTC, he said, which wouldn’t be the first time.
Meanwhile, “1 day RSI breakout will very likely lead the LTCUSD price chart breaking its 6-month long bear channel,” said the analyst.
Largest Miner Capitulation Ever
Woo noted that this was also the “largest miner capitulation LTC has ever faced.”
Miner capitulation is basically when smaller mining operations gets forced into a difficult situation because of the fall in the prices of a crypto asset while their mining machines become technologically obsolete.
This forces these miners to sell their digital assets to keep their operations running and upgrade their systems.
When the profitability is limited, miners selling their crypto assets can turn into a vicious cycle. As Cole Garner, a popular cryptocurrency analyst explained,
“Undercapitalized miners panic sell, price dumps, longs get squeezed, stop losses cascade — then more miners lose their lunch.”
Fundraising for Mimblewimble & Extension Block Going Strong
On the development front, the fundraising for the Confidential Transaction Fund is “going strong” and the team is already one-fourth of the way there, as per the December update.
Fundraising for the Litecoin Confidential Transaction Fund is going strong. We are 1/4 of the way there. But we still need your help #LitecoinFam. Thanks! https://t.co/lHZE1ipGtn pic.twitter.com/iDoGlp3vMG
— Charlie Lee [LTC⚡] (@SatoshiLite) December 30, 2019
The Litecoin Foundation is also setting up a dedicated development fund that will go towards sponsoring David Burkett, a developer for Grin++ who will work on implementing Extension Block and MimbleWimble code for Litecoin to address the issue of fungibility.
Out of the $72,000 goal, a total of $23,768 has been raised, 0.04486046 in BTC ($376) and 497.72304626 in LTC ($23,392).
The lead developer of the Litecoin MimbleWimble proposal, Burkett is planning to split half of his 30 hours a week for Mimblewimble and the other half on Grin++. Burkett said in his November report,
“After months of planning, development of the mimblewimble extension block has officially started! My efforts this month focused mostly around restructuring the core logic (…) that involves all of the logging, serialization, crypto, error handling, and common data structures (headers/blocks/txs).”