June 09, 2019 | AtoZ Markets - The cryptocurrencies are in a corrective phase. Bitcoin has muscled its way ahead with good recoveries once again. The no 1 cryptocurrency has gained 30% in July after the end of June rapid drop. Litecoin which is considered to have a strong direct correlation with BTC in terms of price movement has not been able to maintain the same growth in July. So far, Litecoin only surges about 6% this month. Today, the 4th largest cryptocurrency (based on market capitalization) on Coinmarketcap has so far lost about $7 to trade at $118 at the time of typing this report.
LTC has been projected to have a very good future just like Bitcoin. Forked from BTC itself, the cryptocurrency has had powerful surges in 2019 that has resulted in a 580% gain from the December 2018 low. In late June, it hit 2019 highest of $147 before it shed about $37 five days after. The fast rally that happened to $137 in the next two days couldn't be sustained and the bears are now pushing below $120.
Litecoin halving in August
The attention is back on Litecoin as the market anticipates the much expected Litecoin halving which is expected to take place on August 5 at block 1,680,000 according to Litecoinblockhalf. The exercise takes place every four years. The last halving took place on 25th August 2015 at block 840,000. A month before the last halving, LTC surged 400%. If this is repeated, the Litecoin price will skyrocket toward $200. However, price is pointing downside instead and looks bearish from a technical perspective. Perhaps, the huge surge will still happen in the coming weeks or halving was not responsible for the huge surge seen in July 2015. The price will always decide what next. Meanwhile, we can study the technical patterns emerging to have an idea of what could happen next.
Litecoin price prediction: Elliott wave perspective
We expected the current bearish correction at $140 before it started. The possibility was much evident in the chart pattern that evolved. A bullish impulse wave from the December low was about completing in mid-June at $140 and the chart below was used for the June 12 update.
The bears have been pushing since we had the update. Price dropped to $110 first and it's likely to drop further as the new chart below shows.
The bearish correction is expected to continue to $90 or even $70 before the bullish trend continues.