What is your gameplan as the Litecoin halving event draws nearer? Litecoin has performed well this year, but the upcoming halving event hasn't received significant attention yet.
Litecoin is one of the oldest and most well-established cryptocurrencies. Like bitcoin, it uses a proof of work consensus system, is decentralized, and did not have an initial coin offering at launch (thus it should not be targeted as a security by the SEC). The Litecoin block rewards for mining are currently 12.5 Litecoin per block. Every 840,000 blocks, the block reward is cut in half. As of this post there are 76,215 blocks until the next halving, estimated to take place August 2, 2023. Similar to bitcoin, the halving event reduces the supply of Litecoin entering the market. This reduction in supply, combined with steady or increasing demand, can cause the price of Litecoin to increase. In the past, we have seen significant price run-ups leading up to the halving event, followed by a reversal within a few weeks of the event. In 2015 the pre-halving trough to peak was in mid-July prior to the August 25, 2015 halving. In 2019 the pre-halving price peaked in mid-June.
Interestingly, there were similar but less extreme economic conditions between the current environment and the 2019 halving. The S&P experienced a recent drawdown, fed funds rate had recently peaked, 2 year bond rates had recently rolled over fed funds, and global liquidity was relatively flat.
My game plan for this halving event is to:
1) assume that price will not reach a new ATH and will have a lower proportional run-up than prior halvings
2) plan for price to peak by mid-June
3) take profits in three stages
TP1 - $130 - the 0.786 of the retrace from the 2019 pre-halving peak to trough
TP2 - $170 - the 0.5 of the retrace from the November 2021 high
TP3 - use a moving stop to allow any further continuation
4) stop loss for invalidation at the bottom of the rising channel
LTC
LTCUSDT
Litecoin is one of the oldest and most well-established cryptocurrencies. Like bitcoin, it uses a proof of work consensus system, is decentralized, and did not have an initial coin offering at launch (thus it should not be targeted as a security by the SEC). The Litecoin block rewards for mining are currently 12.5 Litecoin per block. Every 840,000 blocks, the block reward is cut in half. As of this post there are 76,215 blocks until the next halving, estimated to take place August 2, 2023. Similar to bitcoin, the halving event reduces the supply of Litecoin entering the market. This reduction in supply, combined with steady or increasing demand, can cause the price of Litecoin to increase. In the past, we have seen significant price run-ups leading up to the halving event, followed by a reversal within a few weeks of the event. In 2015 the pre-halving trough to peak was in mid-July prior to the August 25, 2015 halving. In 2019 the pre-halving price peaked in mid-June.
Interestingly, there were similar but less extreme economic conditions between the current environment and the 2019 halving. The S&P experienced a recent drawdown, fed funds rate had recently peaked, 2 year bond rates had recently rolled over fed funds, and global liquidity was relatively flat.
My game plan for this halving event is to:
1) assume that price will not reach a new ATH and will have a lower proportional run-up than prior halvings
2) plan for price to peak by mid-June
3) take profits in three stages
TP1 - $130 - the 0.786 of the retrace from the 2019 pre-halving peak to trough
TP2 - $170 - the 0.5 of the retrace from the November 2021 high
TP3 - use a moving stop to allow any further continuation
4) stop loss for invalidation at the bottom of the rising channel
LTC
LTCUSDT