According to Charlie Lee, creator of Litecoin, one of the well-known names in the crypto money market, the popular altcoin Litecoin can make big gains against Bitcoin, especially as the halving event in August approaches! Here are the details…
Litecoin is up 85 percent since record lows versus Bitcoin
Charlie Lee, a well-known figure in the cryptocurrency market, said that the LTC/BTC trading pair will gain 700 percent in the next bull cycle, with the popular altcoin Litecoin having “higher throughput by design, scalability with expansion blocks, better interchangeability and privacy than MWEB.” indicates that he may experience an uptrend. Here are Charlie Lee’s words:
I can see an upside target of 10 percent (0.025 LTC/BTC). Reaching 5 percent (0.0125) in the next bull market shouldn’t be too hard. To be honest, I don’t think it will go much below 1 percent (0.0025) on the downside. 92 days left until the next halving. This will be fun.
Charlie Lee’s comments came after Litecoin rebounded by 85 percent from its record low of 0.001716 BTC in June 2022. LTC is still around 90 percent below its November 2013 record level of 0.051 BTC due to increased competition in the altcoin market.
Litecoin’s halving event is approaching!
LTC’s recovery in recent months has been accompanied by increased excitement about the upcoming block reward halving. As Cryptokoin.com reported, the Litecoin block reward given to miners will be reduced by 50 percent from 12.5 LTC to 6.25 LTC in August 2023. As a result, according to experts, the supply of new LTC will drop by 50 percent, which will make LTC more scarce in the market, at least in theory, thereby increasing its price.
Historically, the months leading up to Litecoin’s halving have often spurred investors to accumulate LTC. Experts point to the first halving event in August 2015 as an example, citing that LTC took place before a 450 percent price increase against Bitcoin.
However, the months before the second halving had seen limited gains as Bitcoin’s crypto dominance increased amid the US-China trade war. However, experts say that after the halving events, the LTC/BTC pair “falls sharply and the same thing can happen after August 2023”. However, according to experts, LTC price techniques point to a similar scenario and LTC/BTC looks like a bear flag pattern as shown below.
According to experts, the LTC/BTC pair could bounce towards the upper trendline of the bear flag, which coincides with the 50-3D exponential moving average (50-3D EMA; red wave) near 0.0035 BTC before the halving. However, the bear flag target is around 0.0024 BTC, a 20 percent drop from current price levels.
So, will Litecoin be able to see the $100 levels by June?
Popular altcoin Litecoin has outperformed the US dollar in the months before the last two halvings. The price of LTC increased by around 250 percent before the first halving and 500 percent before the second, respectively, when measured from session lows.
Looking at the data, the price followed a similar uptrend prior to the August halving, with LTC up 120 percent from the session low of around $40. Based on a mix of technical and on-chain indicators, it could continue to rise in the coming months. As an example, experts point to Glassnode’s MVRV-Z score of -0.139, which puts Litecoin far below its fair value. The MVRV-Z score represents the ratio between market and actual value. A market cap that is significantly higher than actual value historically indicates a market peak (red zone). The reverse indicates market bottoms (green zone) as shown below.
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