Litecoin (LTC) price has invalidated all the market expectations since its halving in August 2023. Analysts were expecting a major bull run after a reduction in block reward. However, LTC price action has played out the exact opposite. Consequently, all the short-term traders are now sitting at heavy unrealized losses.
A halving event refers to a halving in the emission of a cryptocurrency after a specific period of time. Litecoin blockchain experienced this milestone in August as its block reward decreased from 12.5 LTC to 6.25. This means that now there is a less amount of Litecoin, which is mined everyday. However, due to the FOMO buying before the event, the digital asset entered an overbought territory well before halving, which resulted in a sell-off after the event.
LTC Price Forecast Today
Technical analysis of the LTC price chart on 4H timeframe reveals that the coin is trading inside the $62-$66.85 range. The bottom of this trading range is acting as a strong support zone. As Bitcoin price has dipped below $26,000, LTC is once again retesting the range lows.
If the price breaks its $62 support level, then bears may push it towards the key psychological level of $50. This will be around 20% downside from the current price level. On the other hand, another bounce from the range lows will put a retest of the range highs around $66.85 on the cards.
Litecoin Loses Strength To Bitcoin
The following LTC/BTC chart shows that the pair surged to the local high of $0.005 in November 2022. Since then, it has plummeted more than 52%, and the bears have gained full control. A bitcoin pair of a coin is a good measure of its strength. Many traders track these pairs to catch a trend early.
Although Litecoin price increased a lot in USD terms during the first half of 2023, it still lost its value in terms of Bitcoin. As long as the LTC/BTC pair trades below 0.0038, I don’t expect any significant recovery in LTC. The downtrend in the following chart depicts how Bitcoin has sucked the air from the altcoin since the start of this year.
Litecoin Price Prediction
A higher timeframe technical analysis reveals that LTC price has broken the uptrend on the weekly chart. The bullish market structure has also been broken as the coin made lower low on weekly timeframe. This has flipped Litecoin price prediction extremely bearish for me.
In the coming months, the price may slowly grind toward $40 level, which is last year low. Before this level, there also seems to be a lot of demand around the key psyc