Bitcoin (BTC) is again witnessing a price below the $70,000 mark, with signs pointing towards a steadfast downtrend rather than an immediate recovery. Unlike typical fluctuations in bull markets where a 30% drop can be considered normal, BTC’s current losing streak threatens to have severe repercussions for the value of altcoins.
Litecoin’s Post-Halving Downturn
After experiencing a significant price surge post-halving last year, Litecoin (LTC) has seen its value plummet. Hopes for a rebound in LTC’s price, fueled by anticipation of BTC halving and ETF approvals, have diminished as the currency struggles to stay above the $100 benchmark. Over 351,000 wallets that held onto LTC for ten months, expecting prices to remain high, were met with disappointment as the value declined.
Investors who poured approximately $400 million into purchasing 3.96 million LTC in the $94 to $101 range now find themselves trapped by the cryptocurrency‘s underperformance. In contrast to other altcoins that have seen their values multiply, LTC investors have yet to enjoy similar gains.
Predicting LTC’s Price Movements
The fate of LTC’s price recovery hinges on the ability to maintain the critical $94 support level and on long-term holders’ patience to resist selling en masse. Should the price stabilize and then target $100 and potentially $104, LTC could aim for significantly higher peaks. However, to ensure an upward trajectory, the $100 support level must hold firm.
A potential drop to $90 looms if LTC loses its grip on the $96-$94 support range. The daily chart presents a struggle to keep above this threshold, with potential downside spikes. Despite the downward pressure, recent trading activity reveals buyer interest at lower prices. Altcoins typically feel the ripple effects of BTC’s downturns, and without a halt in selling, LTC might slide towards $88-$83 and possibly even to $75, a price region visited earlier in March. Excessive selling could also precipitate a steep descent to the $67 support level.