Litecoin remains in a bearish posture following its rejection from the psychological level of resistance at $50 yesterday afternoon.
It followed Bitcoin’s lead on Wednesday as it momentously surged by more than 13% to test $50 before retracing the entire candle on the following day.
At the time of writing Litecoin is trading at around $47.90 with continuation to the downside seeming more likely than a bullish break out.
If Litecoin continues to trade below $50 and the daily 200MA at $52 it remains in the control of bearish traders in spite of the upcoming Bitcoin halving.
Bitcoin will undergo a reward halving in less than 12 days in an event that has historically been very kind to the entire cryptocurrency market.
The previous halving happened in 2016 and was considered the spark to the 2017 bull market that saw Litecoin rise all the way to $420.
But it’s worth noting that the focus will be on Bitcoin initially as it responds to the halving, which will effectively cause a reduction in supply of coins coming onto the market.
Altcoins like Litecoin typically rally when Bitcoin is consolidating after rising itself, as traders take profits on Bitcoin and diversify a portion of it into more speculative bets.
If Litecoin can piggyback on the potential success of Bitcoin upside price targets begin to emerge at $59, $64 and $72, although breaking above the 200MA will be crucial if a rally is to be sustained.
Bitcoin, meanwhile, needs to ensure it continues trading above $8,400 this weekend in order to avoid another gruelling and dramatic correction.
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Litecoin was released in October 2011 by Charlie Lee, a former Google employee. It is a fork of Bitcoin, with the main difference being a smaller block generation time. The protocol also increased the maximum number of coins and implemented a different script-based algorithm.
Litecoin is one of the leading cryptocurrencies and is one of the top 10 cryptocurrencies by market capitalisation.
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