The crypto space has been witnessing a roller coaster ride in the past few days, with some altcoins outperforming the leading cryptocurrency, Bitcoin. Litecoin (LTC) and Bitcoin Cash (BCH) have been the most notable performers, recording impressive gains and breaking key resistance levels.
Litecoin (LTC) Pre-Halving Effect
One of the main drivers behind the Litecoin rally is the upcoming halving event, which is expected to occur in early August. The halving would reduce the block reward for miners from 12.5 LTC to 6.25 LTC, creating a supply shock and increasing the coin’s scarcity.
Historically, halving events have been bullish for cryptocurrencies, as they create a sense of urgency and FOMO among investors who want to accumulate the coins before they become more expensive to mine. This was evident in the previous Litecoin halving in 2019, which saw the price of LTC surge by over 500% in the months leading up to the event.
LTC/USD is currently priced at $112.147863, showing a decrease of -1.419374 (-1.25%) compared to the previous value. The market cap of Litecoin stands at $8.218 billion.
Litecoin has experienced a magnificent surge in the past week, recording a single-day rise of over 30% on July 2nd. The price of LTC broke above several key resistance levels, such as $100, $110, and $120, reaching a three-month high of $124.
The long-term projections for LTC are bullish, as the price is expected to continue its upward trajectory until the halving event. The next major resistance level for LTC is $125, which coincides with the 0.618 Fibonacci retracement level of the previous downtrend from $247 to $105.
If LTC could break above this level with strong volume and momentum, it could mark the yearly high close to $140, corresponding to the 0.786 Fibonacci retracement level. However, if LTC faces rejection at $125 or fails to sustain its rally, it could retrace back to the support levels at $120, $110, or $100.
Bitcoin Cash (BCH) as a Commodity
Another altcoin that has been making headlines is Bitcoin Cash, a fork of Bitcoin that aims to offer faster and cheaper transactions. Bitcoin Cash has been on a massive upswing in the past week, recording a double-digit gain of over 200%.
One of the possible reasons behind this rally is the speculation that Bitcoin Cash is being considered a commodity similar to Bitcoin rather than a currency. This could significantly affect its legal status and adoption, as commodities are generally more favorable for investors and regulators.
Bitcoin Cash has displayed interesting movements in the past week, pushing to break the token’s support. The BCH price surged by more than 200% after breaking above the decisive symmetric triangle pattern formed in May.
BCHUSD is currently standing at a price of $295.54772, witha decrease of -3.28560 (-1.10%) compared to the previous value. Bitcoin Cash has a market cap of $5.728 billion.
In terms of technical indicators, the sentiment for Bitcoin Cash appears to be neutral to bearish. The MACD (Moving Average Convergence Divergence) histogram shows a positive value, indicating a bullish signal. However, the MACD line crossing below the signal line suggests a potential trend reversal. The moving averages also indicate a neutral stance.
If BCH fails to hold above the support levels and breaks below the triangle pattern, it could invalidate the bullish scenario and trigger a bearish reversal. The price could then drop to the next support levels at $250 or $200.
Litecoin and Bitcoin Cash have been the stars of the crypto market in the past week, showing impressive gains and breaking key resistance levels. Both coins have been driven by various factors, such as the upcoming Litecoin halving, the speculation of Bitcoin Cash as a commodity, and the increased adoption and innovation in their respective ecosystems.
