A popular analyst believes that one large-cap altcoin is gearing up to break away from the downtrending crypto markets.
The pseudonymous analyst Rekt tells his 330,000 Twitter followers that peer-to-peer payments network Litecoin (LTC) may have already printed a bear market bottom.
“LTC bottoms precede BTC bottoms
In 2015, LTC bottomed in April and BTC bottomed in August
In 2018, both Litecoin & Bitcoin bottomed at the same time
Now in 2022, LTC may have bottomed in June 2022, but BTC may still see new lows
Situation is resembling 2015 correlation.”
According to Rekt, historical price action indicates that Litecoin has a tendency to go on a strong upswing before the coin’s halving event. LTC is slated to undergo its next halving event in the third quarter of 2023.
“LTC tends to rally prior to its halvings. However, the rallies top out pre-halving.
LTC topped out one month prior to halving one and two months pre-halving two.
Could LTC top out three months pre-halving three?
If so, top would be in May 2023.”
Should history repeat itself, the crypto strategist says that Litecoin could break free from the overall bearish state of the crypto markets and rally on its own.
“It’s possible LTC could enjoy a period of decorrelation from the general crypto market over the coming months because of its upcoming Litecoin halving in August 2023.”
At time of writing, Litecoin is changing hands for $68.61, down over 2% on the day.
While the crypto strategist is bullish on Litecoin, he says that Bitcoin (BTC) is flashing signs of weakness and is at risk of recording a new bear market low.
“A textbook BTC breakdown from $19,500 would imply a relief rally to turn $19,500 into new resistance.
But BTC hasn’t been able to even press past its immediate resistance at ~$17,150 (weakness).
Monthly close below $17,150 and may drop lower in the blue range.”
At time of writing, Bitcoin is trading at $16,700, well below Rekt’s crucial monthly level.
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