A Disappointing Litecoin Halving Event - What Now?

A Little Out Of Key

History definitely tends to rhyme. However, sometimes it tends to go a little off-key. Kind of like with the recent Litecoin halving. Yes, LTC did rally into the halving, but it underperformed the performance of the past two halvings rather significantly. I was expecting to see at least $150 to $200 during the run-up to the halving event. Litecoin managed to peak at approximately $115, which is not too bad, but it definitely could have been a lot stronger.

As mentioned in my article yesterday, the altcoin market is very much under the influence of market dynamics that rank a lot higher than events such as altcoin halvings, announcements, and partnerships. That being said, Litecoin’s halving is systematically scheduled to consistently occur during the final stages of a bear market, due to it being a number of months prior to the Bitcoin halving.

However, that has never hindered Litecoin before. We did however experience a few negative events, largely influenced by the SEC. Drawing your attention to the screenshot below, one can see that LTC has consistently rallied into the halving and then immediately sold off afterward. Today we witnessed the third Litecoin halving… and already LTC has dropped by approximately 7%, while Bitcoin is up slightly for the day.

Image Source

What needs to be understood is that the pre-halving pump has nothing to do with the effect of the halving. It’s merely driven by excitement and speculation. What happens now? Well, a retracement is typically followed by a period of consolidation, which in turn is followed by an appreciation in price alongside the Bitcoin halving, as well as the fundamental effects of the Litecoin halving that are now beginning to kick in.

Essentially, this is a rather boring period and only begins to heat up next year. It’s definitely a time for accumulation. However, I will be looking to accumulate smaller cap projects with a greater chance of potential upside. It is however possible that as Bitcoin becomes increasingly more expensive, investors will look to Litecoin in a similar way that commodity traders began to look to invest in silver.

Litecoin is also a fairly launched project like Bitcoin, which does provide a higher level of “purity” than most altcoins. This particular aspect keeps Litecoin in a somewhat favorable position when it comes to regulation and the SEC. However, I am looking to secure gains in this bull market, not actual investments. It’s about leveraging promising opportunities for me. Everyone will of course have their own unique approach and objectives.

Final Thoughts

Well, a little disappointing, to say the least, but it is what it is. It is definitely looking like the final accumulation period is playing out very much as expected. I did however expect Litecoin to buck the trend a little, even if briefly. Anyway, we continue with accumulation goals. This is the final opportunity, and even though I expect it to be rather drawn out, time has a way of sneaking up on you.

So, don’t get caught sleeping. I, for one, am looking at consistently accumulating a number of micro-caps, and adding to them over the next six to eight months. This will be done on a basis of performance and not simply dollar-cost averaging into altcoins that are not displaying the appropriate signs and price action. That’s it for this one. Catch you next time!

Disclaimer

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This article was first published on Sapphire Crypto.

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