On December 12th, 2017, Charlie Lee sent out a tweet asking people not to get too excited. Charlie stated that anyone who could not handle Litecoin (LTC) dropping to $20 should not buy it. While many dismissed him, his reasons for making these assertions were rock solid. Charlie explained that every time the crypto market rises up too fast, it overshoots its real value, which leads to a huge correction, and a price consolidation. Charlie’s predictions have come true.
The 2018 correction has seen most altcoins lose up to 90% of their value. Litecoin hitting $20 also looks like a very possible reality at this point. From a look at its long-term chart, it is clear that Litecoin has broken market structure and is now deep in bear territory. The moment it broke the weekly 200-day MA support at $41.66, it opened the floodgates for short selling and the next possible support is between $25 – $19. This makes Charlie’s prediction accurate to the letter. If Charlie’s word is anything to go by, then this collapse could be followed by a multi-year consolidation before the market can see a new bull run.
Going by Charlie’s sentiments, then it is possible that Litecoin (LTC) is now entering a buy zone. That’s because if previous crypto boom and bust cycles are anything to go by, then Litecoin (LTC) could bounce back even bigger than it was in the 2017 Bull Run. Several factors support a possible rise in the price of Litecoin in the long-term. The most important of them is the halving that is coming up close to a year from now. This, like the previous Litecoin halving, could see the value of Litecoin (LTC) rise substantially.
On top of that, Litecoin (LTC)’s rate of adoption has been growing over time. Merchants all across the world have been adding Litecoin (LTC) as a form of payment. As more merchants move to adopt Litecoin as a form of payment, its intrinsic value will continue to grow. This will play a role in driving up the value of this crypto since usage is part of what of what gives cryptocurrencies value. It will be a strong basis for Litecoin’s rise in the next bull market and could play a role in driving Litecoin past its last bull highs, possibly to $1000 or more.
Watching Charlie’s moves in the market can help too. Charlie sold his Litecoins at its all-time highs, a smart move for any savvy investor. Since he is still involved with Litecoin (LTC) watching his moves can help time its next move. The moment he gets back in the market and starts buying Litecoin (LTC), it could be an indicator that the market is about to turn bullish. He has also been pushing Bitcoin (BTC) lately, which could also be a good indicator that Bitcoin is long-term bullish, and could outperform Litecoin (LTC) in the next Bull Run. One thing is clear though, Litecoin’s long-term prospects look good, and Charlie Lee knows a thing or two about it. It’s one of the cryptos to watch in 2019.