Bullish case for Litecoin strengthens as LTC halving draw nears

Litecoin (LTC) is still under-trending like the rest of the cryptocurrency market, but one thing that sets the altcoin apart from others is its clear bullish case. Unlike the rest of the market, Litecoin looks set for another rally, which is likely to extend beyond the next halving.

Litecoin Halving Presents a Bullish Scenario

Litecoin, like bitcoin, is halved every four years and block rewards are cut by 50%. The purpose of this halving is to reduce the amount of new supply coming into the market. And as demand increases, there is less supply to meet this demand, causing shortages and increasing prices.

Litecoin’s next halving is just around the corner with only three months to go. This halving, like those before it, holds the same promise of a rally for the digital asset. In the last halving of 2019, the price of LTC dropped to around $62 before rallying to a local peak of $80 in the same month.

LTC halving will happen in August | Source: Nicehash

If this year’s halving holds true to this trend, the digital asset should see some upside in the coming months. This could result in LTC clearing the $100 level once again as investors prepare for the next leg-up.

A 20% upside is achievable at this point, with the peak expected to occur in early August in particular. So more than likely, buyers will dominate the market for the next two months, which will drive up the Litecoin price.

LTC Outlook for 2023

Currently, the crypto market is witnessing muted momentum as investors are indecisive. For Litecoin, the upcoming halving remains a bullish event, but the prospects for the months following the halving event do not look good considering the historical performance.

Previous performance paint bull case for LTC | Source: LTCUSD on TradingView.com

After each halving, LTC has seen a reversal in sentiment after the initial surge and subsequent crashes have been more brutal than the uptrend. For example, in 2019, a month after the halving, the price of LTC fell by almost 50% in the month of September. This was because the bull market had yet to begin and the cryptocurrency again fell in lockstep with the rest of the market.

Given this historical performance, it seems that the best time to take profits would be late August when the asset is up by around 30%. The window of opportunity closes with the month of September which has historically been a bearish month for cryptocurrencies.

At the time of writing, LTC was trading at $87.11, up 3.22% over the last day.