The 2017 cryptocurrency bull run made history for its rather unexpected yet rewarding nature, with the heavily scrutised Bitcoin rising like a phoenix to $20,000 while other altcoins like Litecoin also surged to new all-time highs.
Litecoin’s run to $420 was not only one of the most captivating but also one of the most surprising considering its value was just $3 at the start of 2017.
March 30 will go down in history for Litecoin bulls as the spark that ignited the tremendous surge in price action. It rose by more than 90% to mark its largest ever one-day gain.
The 2018 bear market was as gruelling as 2017 was euphoric. Litecoin fell by more than 75% within the space of one month before a one-year downtrend eventually saw its price slump to as low as $20.
However, the first six months of 2019 acted as a period of resurgence for Litecoin as it rallied to $146 on the back of news that Facebook would be launching its own cryptocurrency dubbed ‘Libra’.
The sentiment surrounding Litecoin in 2019 can also be compared to the start of 2020 with it recording a 101% gain since the turn of the year.
And while it seems as though a major cryptocurrency bull market is far away, a number of technical indicators seem to suggest that it might be on the cards this year.
Golden cross
Litecoin recently experienced a daily exponential moving average (EMA) golden cross, which saw the 50 EMA cross the 200 EMA to the upside.
The previous time this happened was in March 2019 which preceded a 180% rally to the upside in a matter of months.
This time around it could well inflate price even more as anticipation mounts surrounding Bitcoin’s halving event, which will take place in May.
Block rewards for miners will be slashed from 12.5BTC to 6.25BTC per block, which has historically caused the price of cryptocurrencies to rise as supply dries up.
Whether or not it will see Litecoin form a new all-time high remains to be seen, but an influx of institutional investment in the industry suggests that it’s an exciting time for a number of the top cryptocurrencies.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.