Just as the Litecoin halving is less than a month away, the number four cryptocurrency is starting to show signs of weakness. After posting a 2019 high of $146 on June 22nd, Litecoin has plunged to a low of $84.88 on July 15th. That’s a drop of over 41 percent in less than a month.
If you think the worst is over, think again. A popular Elliottician on Twitter named Benjamin Blunts shared his forecast on Litecoin’s future price action. His prediction comes in the form of a sandwich where two pieces of good news enfold the bad news. According to the trader, the cryptocurrency’s long-term bottom is in. However, it is very likely to dump again soon before it resumes its uptrend.
The Litecoin halving is 19 days away. For those who don’t know, the halving is one of the most anticipated events in the cryptocurrency community due to its bullish nature. On August 20th, block rewards for miners will be decreased from 25 to 12.5 coins. The cutback of coins in circulation reduces the inflation rate of the crypto token from 8.74 percent per annum to 4.26 percent.
Many people expect that this event will likely supercharge Litecoin’s value. However, trader Benjamin Blunts thinks the exact opposite. Unfortunately, the decline to $84.88 is “too short” in the eyes of the Elliottician to qualify as a proper wave two. According to the analyst, it is likely just a wave A of a much larger correction which will drive the price down to $70. That’s an over 20 percent dump from current prices. Interestingly, the timeline of the dump coincides with Litecoin’s halving. Thus, he argues the event will be a sell on news. Just looking at the basic structure of a five-wave pattern, you can easily spot the resemblance to the chart posted by Benjamin Blunts. After the drop to $70, which is the second wave, the trader drew a long wave up to illustrate the strong third wave. Litecoin is showing signs of bullish exhaustion and an Elliott wave analyst is saying that the downturn is far from over. According to the trader, the incoming halving would be leveraged to dump on unwitting retail traders. Nevertheless, there’s a light at the end of the tunnel as the cryptocurrency would rise from the dead and print a new all-time high.
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