Cryptocurrency trader DonAlt, known for successfully riding the crypto surge earlier this year, has taken a cautious stance towards Litecoin (LTC) as the peer-to-peer payments network approaches its next halving event, just a couple of weeks away. Analyzing historical price action, DonAlt notes that Litecoin tends to experience significant corrective moves following a halving event, leading him to believe that the upcoming halving on August 2nd will not drive LTC to new 2023 highs.
DonAlt, with a Twitter following of 496,000, acknowledges that while he previously advocated for Litecoin due to the halving, he has now changed his position. He sees the halving as a drag rather than a bullish catalyst, especially considering that many investors purchased LTC in anticipation of the event. Nevertheless, he expresses his intention to accumulate Litecoin again in 2026, anticipating its fourth halving.
Examining the Litecoin versus Bitcoin (LTC/BTC) ratio, DonAlt highlights a pattern where the pair tends to lose over 80% of its value following each recent halving. At the time of writing, Litecoin is trading at $92.89, a price that reflects the trader’s cautious outlook.
However, it’s not just Litecoin that is under scrutiny for DonAlt. 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 U.S. Securities and Exchange Commission (SEC), Bitcoin appears weak in the eyes of the trader. He notes that although Bitcoin is currently finding support at a daily level, he finds it challenging to be bullish considering the constant support testing and the abundance of positive news. Additionally, the trader finds it intriguing to observe Bitcoin’s price movements above $30,600 or around $27,000 for short-term trading opportunities.
At the time of writing, Bitcoin holds a value of $30,060, leaving investors uncertain about the crypto king’s next moves. DonAlt’s analysis brings attention to the potential risks associated with both Litecoin and Bitcoin, urging investors to exercise caution and evaluate the market dynamics closely.
In conclusion, while the upcoming Litecoin halving event draws attention, experienced traders like DonAlt urge investors to be mindful of historical trends and exercise caution. With Bitcoin’s current weakness amidst positive news, the crypto market’s future remains uncertain. Consequently, it is crucial for investors to make informed decisions based on a thorough understanding of the market and its dynamics.