Litcoin recently receded into the background for most users of crypto currencies. As a Bitcoin descendant, the currency didn’t seem to be a big feature. And in the then Bitcoin Crash, the Litecoin exchange rate also dropped enormously. But suddenly it looks completely different…
From approx. 2.01$ on 15.06 the price rose in less than a month to more than four times 8.18$ on 10.07. Within five days it doubled from 4.01$ (05.07) to 8.18$ (10.07, in the morning).
Phase 1: Extreme boom
The first phase is characterized by an almost surreal increase of the Litecoin price. At first the price rose to approx. 5$ and reached a high of 5,20$.
The English-language portal newsBtc regards the share price as overvalued. The analysis of the 240-minute chart showed that the price in dollars was much too high.
Bitcoin news about the trading volumes
The enormous increase shows a large increase in Bitcoin news. It is noticeable that very small volumes were traded before the boom and that the trading margins (minimum and maximum price) were close together.
The decisive moment
Apparently the rise in Litecoins’ share price is also related to the Greek crisis. The beginning of the boom happened around the same time as the announcement of the election results, when the Greeks voted not to accept the reforms of the EU any longer.
As with the Bitcoin, the issue is probably one of currency flight. Greeks save their money by buying in foreign currencies.
Phase 2: Great volatility (08.07.2015)
The Litecoin price fell from approx. 5.38$ to 4.41$ (approx. 18 percent loss). The current events show how volatile Litecoins currently are on the market. After a short time, however, it calms down again. In the end, it reached the entry price again.
It seems that the price continues to withstand the overvaluation. The price reacts shakily, but remains higher due to the massive volume.
Phase 3: Journey to the Moon (09.07)
The Litecoin covers a long way and continues in the upward direction: Since yesterday it gains another 18 percent and now rises to 6.15$.
Apparently, the high volume pushes the previous day’s high further upwards.
Everything a Bitcoin formula?
So far there are no reasons that speak for the enormous Bitcoin formula upward trend: https://www.forexaktuell.com/en/bitcoin-formula-scam/. The phenomenal increases of the crypto currency rates are not based on a rational explanation, the risk thus becomes higher.
Phase 4: Indecision (10.07, morning)
The Litecoin breaks all boundaries. From 2$ to 8$ the price literally explodes, but it doesn’t take long until the bubble bursts. Since yesterday’s rise was also not based on any new influences, this seems to be only about market psychology. That means: sooner or later the mood will change.
Until the early morning, the price rose to a high that comes very close to the record. With 8$ however the bubble seems to burst slowly. Then the price falls. Within shortest time the descent ends with only 5$ in the late morning (approx. 12 o’clock). Afterwards, the price remains constant between 5 and 6$, until it goes further down in the late evening and the price moves from 5,30$ to 4,35$. (22:30 hrs)
Phase 5: The future
Rarely have we seen such exciting price movements in Litecoin as last week. It is a psychological game between investors, followers and people who are betting on the crash. The trigger seemed to be the progressive rise in the price due to the currency flight from Greece, which set off the avalanche.
For these reasons it is practically impossible to give a reliable forecast for the next days & weeks. Since it seems to be more about psychological behaviour than real external factors, both options are open.
Possibility 1:
The Litecoin price continues to rise. It is – as the large trading volumes also suggest – a matter of panic sales that have initiated and driven the descent. In the long run it will settle down in the middle
Possibility 2:
The past few days have been a veritable peak that will disappear completely into thin air. The price drops back to its approximate level of two weeks ago and levelled off at around 2 dollars. However, this possibility seems very unlikely if you look at the strong counteracting forces.