24 February, 2024

LTC and BTC Show Diverging Signals Amid Halving and Market Volatility

7 months ago

30 Oct, 2023

Litecoin (LTC) and Bitcoin (BTC), two of the most popular cryptocurrencies, displayed contrasting price signals in the past week. A prominent crypto analyst, Ali, shared his insights on the technical indicators and market trends affecting the two digital assets.

Notably, Ali presented an intriguing analysis on Litecoin’s recent surge in new addresses, suggesting a potential price correction following the upcoming halving.

In the tweet, Ali noted that the TD Sequential indicator, which tracks an asset’s momentum and trend direction, showed a buy signal on BTC’s daily chart. He explained that a daily close above $30,000 could validate the bullish formation and lead to an upswing to $30,400 – $30,600. However, he also warned that the $29,500 level was a crucial support that could invalidate the buy signal if broken.

Notably, Ali’s analysis highlighted the potential for Bitcoin to experience an upswing, reaching the range of $30.4K to $30.6K:

Ali’s bullish outlook on BTC came amid a turbulent week for the crypto market, which saw several major coins lose value due to regulatory pressures and negative sentiment. BTC dropped below $30,000 for the first time since June 22 on July 20, before recovering slightly in the following days.

On the other hand, Ali was more bearish on LTC, which is scheduled to undergo its halving event on August 5. The halving is a process that reduces the reward for mining new blocks by 50%, which theoretically increases the scarcity and value of the coin. However, Ali pointed out that a significant price correction followed each time the number of new LTC addresses surpassed 350,000 in the last five years.

He added that more than 690,000 LTC addresses were recently created, suggesting that the upcoming halving could be a “sell the news” event, meaning that traders would sell their coins after the halving to lock in profits. LTC has been trading sideways in the past week, hovering around $120.

Ali’s analysis highlighted the different factors that influence the price movements of LTC and BTC, as well as the challenges and opportunities that crypto investors face in a volatile market. While both coins share some similarities, such as being based on proof-of-work algorithms and having limited supply, they also have distinct features and use cases that affect their demand and supply dynamics.

The Bitcoin (BTC) price is $29,792.14, representing a 24-hour change of 0.44%. The cryptocurrency’s market cap is approximately $1.19 trillion, with a 24-hour trading volume of $24.47 billion.Over the past 24 hours, Bitcoin’s price has experienced some fluctuations, reaching a low of $29,674.53 and a high of $30,330.64.

Litecoin (LTC) is currently trading at $92.46,  representing a decrease of 0.14% in the last 24 hours. The cryptocurrency has a market cap of $6,789,349,100, making it the 12th largest cryptocurrency by market capitalization.

In conclusion, as BTC and LTC continue to engage in a dynamic battle for dominance, the market eagerly awaits the outcomes of these intriguing developments. Whether the TD Sequential buy signal for Bitcoin would prove accurate or the Litecoin halving would prompt a “sell the news” event remains to be seen.