LTC Can Make Major Gains Versus BTC as Halving Event Approaches, Says Charlie Lee

LTC Can Make Major Gains Versus BTC as Halving Event Approaches, Says Charlie Lee

According to Charlie Lee, the creator of Litecoin (LTC), the cryptocurrency could see significant gains against Bitcoin (BTC) as its halving event approaches in August. Lee believes that the LTC/BTC pairing could potentially rally up to 0.025 BTC, an increase of over 700%, in the next bull cycle. This is due to Litecoin’s higher throughput, scalability, fungibility, and privacy features.

LTC has experienced an 85% price recovery from its record low in June 2022, but is still down 90% from its record high in November 2013 due to increased competition in the altcoin market. However, the upcoming block reward halving has generated buzz around LTC’s potential for growth.

Halving and Technical Indicators

The Litecoin block reward to miners will be cut in half from 12.5 LTC to 6.25 LTC in August 2023, which should make LTC more scarce on the market and potentially drive up its price. Historically, traders have accumulated LTC in the months leading up to halving events, with the first halving event in 2015 preceding a 450% price rally versus Bitcoin.

However, LTC/BTC usually drops sharply after halving events, and technical indicators suggest a similar scenario this time around. LTC/BTC appears to be printing a bear flag pattern, with its target sitting around 0.0024 BTC, down 20% from current levels.

Despite this, LTC’s price is undervalued relative to its fair value, according to Glassnode’s MVRV-Z score of -0.139. Litecoin has entered the green zone, which typically precedes strong bullish reversals. Additionally, LTC/USD is well-positioned for a rebound after retesting its ascending trendline as support. LTC/USD could potentially climb toward its horizontal resistance level near $100, up about 20% from current prices.

In conclusion, while there are potential risks associated with the upcoming halving event, technical and on-chain indicators suggest that Litecoin could experience significant gains in the coming months.


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