Litecoin technical rebound may end up benefiting the price of Bitcoin, says analyst
Bitcoin (BTC) could see its Litecoin-induced bull market (LTC) when it enters a bullish renaissance, as statistician Willy Woo has predicted. In a series of tweets on January 6, Woo, well known in crypto space as the creator of the Woobull data resource, highlighted a surge in Litecoin fortune in recent weeks.
Woo: Litecoin difficulties “are recovering”
Specifically, it is the difficulty of altcoin mining that has begun to increase once more after more than six months of decline. Difficulty is a measure of how much computing effort is required to process transactions in a cryptocurrency blockchain. A fall in the price can cause miners to withdraw due to low profitability, which triggers a fall in difficulty. This, in turn, has implications for network security.
Woo said the second half of 2019 was “the largest mining capitulation that LTC has ever faced.” Woobull data confirm that the difficulty has dropped from more than 16 million last July to only 4.7 million in mid-December.
Since then, the difficulty has begun to improve, currently standing at 5.1 million. This, says Woo, could not only produce a boost for Litecoin, but it would extend to feed the already bubbling Bitcoin market.
“The Litecoin Difficulty Ribbon is recovering,” he said, adding: “It should establish a bullish breakdown of the bearish channel. I wouldn’t be surprised if LTC leads a bullish breakdown of the BTC. ”
LTC’s main earnings have not yet appeared
Litecoin was launched in 2011 as a hard fork of the Bitcoin Core client and is currently the sixth largest cryptocurrency by market capitalization.
Despite having lost value significantly in the collapse of the altcoins in 2018, the currency’s performance improved in 2019. As Cointelegraph reported, LTC / USD jumped from USD 32 to USD 141 in the first half of the year, a breakthrough of Bitcoin that started on April 1.
In November, Cointelegraph contributor Keith Wareing predicted “significant” gains for LTC owners. In this case, the markets reached USD 61 before falling to USD 37 before Christmas. At the time of this edition, Litecoin traded at USD 45 with a modest daily earnings of 1.3%, compared to 5.5% of Bitcoin.
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