Litecoin is moving

in #bitcoin2 months ago (edited)

Litecoin seems to be breaking out!

And, looking at the weekly chart, it's about time.

Just 4 days ago, there was news describing the largest capitulation of litecoin miners during the second half of 2019 (https://cointelegraph.com/news/litecoin-largest-miner-capitulation-great-news-for-bitcoin-analyst).

As you know, miner capitulation is a bottoming signal. The reasoning goes as follows: less profitable miners need to sell most of their mined crypto immediately to cover their operating costs, which puts great downward pressure on the price. Once these less efficient miners throw in the towel, not only does the selling pressure from them disappear, also the hashrate drops, which makes it more easy and somewhat cheaper to mine coins for the remaining miners who'll need to sell less coins to cover their operating costs. Consequently, significantly less downward pressure remains versus unchanged upward pressure and a bottom is stamped solidly on the charts.

Litecoin had its halving already on August 5th, 2019, dropping the coinbase from 25 to 12.5 LTC. So, it's actually no surprise that miners started to get into difficulty with a lower reward and dropping prices. This might also be the explanation why litecoin tends to move earlier than bitcoin.

Litecoin in USD

Litecoin in BTC

Now, the bitcoin chart is still somewhat indecisive, but this litecoin push could be just what it needs.