LTC breaks through 130 US dollars, is it still possible to get on board?

Today's Interpretation

According to Huobi.com, LTC reached a high of $130.1 in the early hours of this morning, with a 24-hour increase of nearly 10%, leading the mainstream tokens and setting a 12-month high since late May 2018.

According to bitinfocharts.com, LTC's hashrate also hit a record high, breaking through 400 Thash/s. Sichuan is a major mining site in China and the entire industry, and this year due to weather reasons, the flood season was delayed, and it was reported that 70% of the mining machines were idle. Under such circumstances, LTC's hashrate continued to rise, indicating that LTC is in a state of steady growth in the short term.

LTC has risen 480% since its bottom in December 2018, second only to BNB's 660% among the top ten major circulating certificates. From the low of $97 on June 4 to now, it has risen 30%, while BTC pales in comparison, with an increase of only 6%. The LTC/BTC exchange rate is 0.016, reaching its highest point since April 15.

LTC currently ranks fourth in market capitalization, and its outstanding performance is likely related to the halving of mining rewards in two months. It is expected that by August 8, the mining reward will be reduced from 25 LTC per block to 12.5.

According to historical data from the first LTC production cut in August 2015 (from 50 LTC block rewards to 25), the price of LTC rose from $1.5 in May 2015 to $8.6 in July, and then gradually fell back to $3 after the halving. In other words, LTC bottomed out in January 2015, started the expected halving in May, reached its highest point in July, and then began to fall. By the time the actual production cut occurred, the price had fallen by 50%.

History will not simply repeat itself, but it will rhyme with the same rhythm. This halving will most likely continue the inverted V-shaped trend of the previous round of rising first and then falling, but the magnitude and duration of the rise and fall are difficult to predict. Compared with the last time, this rising market started significantly earlier, and when the highest turning point will come in the short term is a question that investors are concerned about.

From a technical analysis, both the moving averages and the relative strength index (RSI) seem to favor the bulls: the 50-day moving average is above the 100-day moving average, the 100-day moving average is above the 200-day moving average, and the main moving averages are all in an upward trend; the RSI broke upward but was lower than the value of 86 in the first week of May, which seems to indicate that there is still a lot of room for prices to rise.

In short, before the halving turning point arrives, LTC is testing the psychological barrier of $150, but if the market falls, $150 cannot be reached.

The current price of LTC is 35% of its historical high, a drop of 65%, while BTC is 40% of its high, a drop of 60%. In the long run, it still has great potential. For investors who have LTC, it is necessary to pay attention to the arrival of the turning point in the past two months. For investors who have not yet made a layout, they can consider it after the halving benefits are realized. When the bull market comes, LTC's growth is still expected!

Market Analysis

Overall View

Today, LTC surged 10% to break through $130, leading the mainstream tokens, which is likely due to the approaching mining reward halving. Similarly, BTC also has a solid bottom due to the increasingly close halving expectations. Yesterday, it broke through the 7500 mark and quickly rose to around 8000, and has never been able to go down. In the long run, BTC's upward trend has not changed, and short-term corrections are still a good time to add positions.

In December 2018, we clearly pointed out the investment opportunities of BNB in ​​the bear market, and were the first to propose that BNB will enjoy the Davis double-click in the bull market (Hedging: The Golden Key to Profiting in the Bear Market of Platform Tokens - Token Valuation Exploration Series 2); in October 2018, we pointed out the price cycle of BTC and predicted that the bottom time would be around May 2019 ([Classic Update Reappearance] The Three Laws and Applications of BTC Bull and Bear Cycles - Freezing Point Outlook 1); in April 2018, when the heat of the bull market had not yet dissipated, we pointed out that it was a rebound rather than a bull market (Is the bull market coming? 4 reasons why it is a rebound rather than a bull market).

BTC made its third attempt at the 7500 mark this month yesterday, and then quickly bottomed out and rebounded, but it has never been able to successfully break through, and the support below is relatively large. Today, stimulated by the 10% increase in LTC, it rose slightly. MACD changed from a downward trend to a parallel trend, and the volume increased. The support level is 7500 and the resistance level is 8020.

ETH is linked to BTC, with the current support level at 226 and the resistance level at 248.

EOS is linked to BTC, with the current support level at 5.9 and resistance level at 6.5.

Risk Warning

The price of digital tokens fluctuates violently. Investing in digital tokens is a high-risk investment behavior. Investors are advised to reasonably assess their investment capabilities and risk tolerance, use leverage prudently, strictly control risks, and invest prudently. Investors are advised to keep in mind that investment is risky and be cautious when entering the market.

Disclaimer

The analysis in this article does not constitute a recommendation for buying or selling. You are responsible for your own profits and losses. Reprinting is welcome, but the source must be indicated.

Source: Biquan