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Bitcoin (BTC) may have its bull market induced by Litecoin (LTC) as the latter enters a bullish renaissance, noted statistician Willy Woo predicted.
In a series of tweets On January 6, Woo, well known in crypto circles as the creator of the Woobull data asset, highlighted a resurgence in Litecoin’s fortunes in recent weeks.
Woo: Litecoin “in recovery” difficulty
Specifically, it is the altcoin mining difficulty that has started to rise once again after more than six months of decline.
Difficulty is a measure of how much computational effort is required to process transactions on a cryptocurrency’s blockchain. A drop in price can cause miners to retire due to low profitability, which triggers a drop in difficulty. This, in turn, has implications for network security.
Litecoin difficulty vs. price, 2011-today. Source: Woobull
Woo said the second half of 2019 was “the biggest mining capitulation LTC has ever faced.” Woobull data confirms that difficulties have dropped from over 16 million last July to just 4.7 million in mid-December.
Since then, the difficulty has started to improve, currently standing at 5.1 million. This, Woo says, could not only produce a bull run for Litecoin, but could extend to fuel the already seething Bitcoin market.
“Litecoin Difficulty Ribbon now in recovery,” he wrote in further comments, adding:
“It should create a bullish breakout of the bearish channel. I wouldn’t be surprised if LTC leads a bullish breakout of BTC. “
The biggest gains from LTC have yet to appear
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 losing considerably in the 2018 altcoin crash, the coin’s performance improved in 2019. As reported by Cointelegraph, LTC / USD jumped from $ 32 to $ 141 in the first half of the year, outpacing the Bitcoin lead that started. April 1.
In November, Cointelegraph associate Keith Wareing forecast “significant” incoming gains for LTC holders. Eventually, the markets hit $ 61 before dropping to $ 37 before Christmas. At press time, Litecoin was trading at $ 45 with daily gains of 1.3%, modest compared to Bitcoin’s 5.5%.
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