Litecoin (LTC) is still trending low just like the rest of the cryptocurrency market, but one thing that sets the altcoin apart from the others is its clear bullish case. Unlike the rest of the market, Litecoin seems poised for another rally that will likely be propelled by the next halving.
Litecoin Halving Presents Bullish Scenario
Like Bitcoin, Litecoin’s halving takes place every four years and block rewards are reduced by 50%. The purpose of this halving is to reduce the amount of new supply entering the market. And as demand rises, there is less supply to meet this demand, leading to scarcity and rising prices.
The next Litecoin halving is now upon us with only about three months to go. This halving, like the previous ones, holds the same promise of a digital asset rally. At the last halving in 2019, the price of LTC bottomed out at around $62 and then reached a local high of $80 in the same month.
LTC halving will happen in August | Source: Nicehash
If this year’s halving stays true to this trend, the digital asset should see some upside in the coming months. This could lead LTC to clear the USD 100 level again as investors prepare for the next leg.
A 20% increase is currently achievable, especially with the expected halving in early August. So more than likely the buyers will dominate the market for the next two months leading to rising prices for Litecoin.
LTC outlook for 2023
Currently, the crypto market is seeing muted momentum as investors remain indecisive. For Litecoin, the upcoming halving remains a bullish event, but the outlook for the months after the halving does not look good given its historical performance.
Previous performance paint bull case for LTC | Source: LTCUSD on TradingView.com
After each halving, LTC saw a turnaround in sentiment after the initial rise and subsequent crashes were more brutal than the uptrends. For example, in 2019, the price of LTC crashed nearly 50% in the month of September, one month after the halving was completed. This was because the bull market had yet to begin and the cryptocurrency was back in line with the rest of the market.
Judging by this historical performance, it seems the best time to take profits is late August, after the asset is up around 30%. The opportunity closes with the month of September, which has historically been a bearish month for cryptocurrencies.
At the time of writing, LTC is trading at $87.11, up 3.22% over the past day.