Cryptocurrency trader DonAlt, known for riding the crypto boom earlier this year, has taken a cautious stance on Litecoin (LTC) as the peer-to-peer payment network approaches its next halving event, just weeks away. Analyzing historical price action, DonAlt notes that Litecoin is likely to experience significant corrective movement after a halving event, leading him to believe that the upcoming halving on August 2 will not push LTC to new highs in 2023.
DonAlt, with a Twitter following of 496,000, admits that while he previously supported Litecoin because of the halving, he has now changed his position. He sees the halving as a drag rather than a bullish catalyst, especially given that many investors are buying LTC in anticipation of the event. Nevertheless, he stated his intention to accumulate Litecoin again in 2026, anticipating a fourth halve.
Examining the Litecoin versus Bitcoin (LTC/BTC) ratio, DonAlt highlights a pattern where the pair tends to lose more than 80% of its value after each recent halving. At the time of writing, Litecoin is trading at $92.89, a price that reflects traders’ cautious view.
However, it’s not just Litecoin that’s under DonAlt’s watch. Despite recent positive news in the crypto space, such as BlackRock’s bid for a spot-based BTC exchange-traded fund (ETF) and Ripple’s legal victory against the US Securities and Exchange Commission (SEC), Bitcoin appears weak in the eyes of traders. He noted that although Bitcoin is currently finding support at daily levels, he finds it difficult to be bullish given the constant testing of support and the large amount of positive news. In addition, traders are interested in observing Bitcoin price movements above $30,600 or around $27,000 for short-term trading opportunities.
At the time of writing, Bitcoin has a value of $30,060, leaving investors unsure about the crypto king’s next move. DonAlt’s analysis pays attention to the potential risks associated with Litecoin and Bitcoin, urging investors to exercise caution and evaluate market dynamics carefully.
In conclusion, while the upcoming Litecoin halving event is attracting attention, seasoned traders like DonAlt urge investors to pay attention to historical trends and exercise caution. With the current weakness of Bitcoin amid positive news, the future of the crypto market remains uncertain. As a result, it is very important for investors to make decisions based on a thorough understanding of the market and its dynamics.