Litecoin Retracement To $50 Highly Likely, Charlie Lee Warns Price Built Into LTC Halving
Today’s Litecoin (LTC) News
Well, Litecoin is an altcoin and like others, the coin is on the chopping board. Wildly fluctuating and on the cusps of printing more losses, LTC is down 14.5 percent in 24 hours. Discouraging for permabulls, there is a high possibility that everything is at the end of the day priced-in in light of next month’s halving.
As ordinary investors expect massive price surges after the on-chain and hard coded event, there is a likelihood that many will be crashed. Charlie Lee, the vocal and sometimes controversial co-founder of Litecoin now says August will be a bloodbath for miners.
Projecting a scarcity shock that will see many miners fold, he says dropping profitability due to slashed miner reward could drive miners out of business. In the interview, he is calling for calculated investment.
“When the mining rewards get cut in half, some miners will not be profitable and they will shut off their machine. If a big percentage does that, then blocks will slow down for some time. For Litecoin it’s three and a half days before the next change, so possibly like seven days of slower blocks, and then after that, the difficulty will readjust and everything will be fine.”
Back in 2017, he prepared traders and general investors urging them to be ready for a 90 percent plus price drops to within the $20 range. True to his word, prices tumbled in 2018 in a self-fulfilling prophesy, printing lows of $20 in Dec 2018 before the spectacular recovery in the first half of 2019.
Presently, and despite corrections, Litecoin is still up 4.5-fold and there is room for more gains assuming demand remain the same and prices end up syncing with previous halving events.
LTC/USD Price Analysis
1 LTC/USD =$188.9219 change ~ 0.86%
- Chart courtesy of Trading View—Coinbase
From the chart, LTC is literally bleeding. However, considering the price rallies and six-fold expansion in H1 2019, it appears as if the current correction was inevitable. Dropping to below $100 and retesting the main support trend line, sellers are in firm control.
Because of this and the fact that prices are now below $100, risk-off, aggressive traders can exit their longs unless otherwise prices recover, rejecting lower prices and printing above $100 at the back of high trading volumes.
On the flip side, conservative, risk-averse type of traders can wait for a high-volume breakout above $120 before committing their longs while aiming at $180 or higher in the next few days. Assuming there is degradation and bears press lower, driving prices below $80 and the main support trend line, odds are LTC will slide to $50 in a classic retest.
After all, LTC is trading within a bullish breakout pattern against the USD. Therefore, while it is shaking out participants, the fact that prices are printing lower as price action seeks for equilibrium is favorable for value investors.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.