Litecoin (LTC), like other cryptocurrency markets, is still trending lower, but one thing that sets altcoins apart from other crypto markets is their clear bullish case. Unlike the rest of the market, Litecoin is looking forward to another rally leading up to the next halving.
Litecoin Halving Presents a Bullish Scenario
Like Bitcoin, Litecoin halvings occur every four years and block rewards are cut by 50%. The purpose of this halving is to reduce the amount of new supply entering the market. And as demand increases, there is less supply to meet this demand, leading to scarcity and skyrocketing prices.
The next Litecoin halving is now about three months away. This halving, like previous halvings, promises a rebound for digital assets. During the last halving in 2019, the price of LTC bottomed out at around $62, before rebounding to a local high of $80 in the same month.
LTC halving will happen in August | Source: Nicehash
If this year’s halving follows these trends, the digital asset could see some upside in the coming months. This could lead to LTC clearing the $100 level once again as investors prepare for the next step.
A 20% upside is achievable at this point, especially with the halving expected in early August. Therefore, it is likely that buyers will dominate the market over the next two months, pushing the price of Litecoin higher.
LTC outlook for 2023
Currently, the cryptocurrency market is losing momentum due to investor indecisiveness. For Litecoin, the upcoming halving remains an optimistic event, but given its historical performance, the outlook for the months following the halving event does not look good.
Previous performance paint bull case for LTC | Source: LTCUSD on TradingView.com
After each halving, LTC saw a sentiment reversal after the initial surge and the subsequent collapse was more brutal than the uptrend. For example, in 2019, the price of LTC plummeted nearly 50% in September, a month after the halving was completed. This is because the bull market has not yet begun and cryptocurrencies are back in step with the rest of the market.
Given this historical performance, the best time to take profits would likely be towards the end of August after the asset rebounds by around 30%. The window of opportunity closes in September, historically a bearish month for cryptocurrencies.
As of this writing, LTC is trading at $87.11, up 3.22% over the past day.