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Is caution an option for Litecoin [LTC] investors going forward

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Is caution an option for Litecoin [LTC] investors going forward

  • Litecoin’s hash rate and difficulty skyrocketed 
  • Metrics and Galaxy Score seemed optimistic too 
  • However, the RSI and MFI were near the overbought zone on the charts

Litecoin’s [LTC] hash rate has been on fire lately, with the altcoin recording sustained upticks for several weeks now. Some credit for this can be given to the Ethereum Merge, because of which miners started switching to other networks such as Ethereum Classic, Ravencoin, and Litecoin. 

Thanks to the hike in hash rate, LTC’s mining difficulty has also been appreciating of late. While the hash rate and difficulty were increasing, LTC’s price registered an unprecedented uptick too. In fact, according to CoinMarketCap, LTC registered more than 30% 7-day gains. At press time, it was trading at $78.61 with a market capitalization of over $5.6 billion.  


Read Litecoin’s [LTC] Price Prediction 2023-24


Better days ahead? 

The hike in hashrate can also be attributed to this price increase as it is possible that new miners were joining the ecosystem in hope of higher profits. Interestingly, several developments and updates that happened in the Litecoin ecosystem suggested that good days for miners might be ahead.

According to LunarCrush, for instance, LTC is on the list of cryptos that have the highest Galaxy Score. This is a major bullish signal for LTC, one projecting a sustained uptrend in the days to follow. 

Not only that, but the Litecoin ecosystem is also quite heated on the social front as its social mentions measured hourly hit 1.84K recently – The highest point in the last 90 days, reflecting the popularity of the coin in the crypto-community. 

Metrics favoured the buyers

A look at LTC’s on-chain metrics indicated that the investors might have more days to cherish. LTC’s MVRV Ratio was considerably higher over the last week, which is a bullish signal. Moreover, LTC also received quite a lot of interest from the derivatives market, as its Binance funding rate also marked an increase.

LTC’s volume also skyrocketed a few days ago, but at the time of writing, it had registered a decline. This might be troublesome going forward.

Source: Santiment

Bears may be gearing up

While most of the metrics gave a positive impression of LTC, its market indicators told a different story.

TradingView’s chart revealed that the crypto’s Relative Strength Index (RSI) hit the overbought zone and then registered a slight decline – A sign of a possible market top. The Money Flow Index (MFI) also took the same path and was just near the overbought zone, further increasing the chances of a trend reversal in the coming days.

Nonetheless, the Exponential Moving Average (EMA) Ribbon supported the bulls as the 20-day EMA was resting above the 55-day EMA. 

Source: TradingView


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Crypto Derivatives DEXs Reposition for Life After FTX

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Crypto Derivatives DEXs Reposition for Life After FTX


That’s driven lots of new interest to some of the earliest decentralized players. Dan Gunsberg, creator of Solana-based derivatives exchange Hxro, said that in recent weeks he’s seen a boom in interest for his trading platform, which he claims cannot fall prey to the same pain points that felled FTX and its sister company, Alameda.


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Price analysis 12/2: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT, LTC, UNI

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Price analysis 12/2: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT, LTC, UNI

Bitcoin and altcoins are beginning to flash signals of a potential trend change, but a handful of downside risks remain.


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Bitcoin’s Total Hashrate Slides Lower in December as BTC Miners Struggle for Profits – Mining Bitcoin News

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Bitcoin's Total Hashrate Slides Lower in December as BTC Miners Struggle for Profits

While bitcoin prices have been lower than the estimated cost of bitcoin production, the network’s hashrate has dropped a great deal since mid-November. Presently, the total hashrate dedicated to the Bitcoin network is coasting along at 236 exahash per second (EH/s) after dropping below the 200 EH/s range six days ago.

Bitcoin’s Hashrate Slips Lower

The first week of November 2022 was brutal for digital currency prices as FTX’s collapse rippled across the entire industry in a negative fashion. Prior to the FTX fallout, bitcoin was trading above the $20K zone and the network’s total hashrate was coasting along at roughly 270 to 290 exahash per second (EH/s) before the blowout.

There was a quick burst of increased hashrate the day after FTX filed for bankruptcy and BTC’s total hashrate tapped an all-time high on Nov. 12, 2022. At block height 762,845, bitcoin miners managed to get the hashrate to briefly rise to a whopping 347.16 EH/s. Since then, the hashrate has divebombed and slid below the 200 EH/s range on Nov. 26.

Bitcoin's Total Hashrate Slides Lower in December as BTC Miners Struggle for Profits

Presently, bitcoin miners have managed to rise above the 200 EH/s region, to the current 236 EH/s recorded at 10:15 a.m. (ET) on Dec. 2, 2022. The drop in hashrate indicates that unprofitable mining entities have been forced to shut down machines, while only the strong operators survive.

At the time of writing, the estimated cost of bitcoin production ($16,956) is awfully close to the leading crypto asset’s spot market value ($16,897). Previously, the cost of bitcoin production was $18,313 on Nov. 30, which was significantly higher than BTC’s spot market value. With a drop in BTC production costs, it makes it easier for current operators to survive.

Bitcoin miners are also expecting a large mining difficulty reduction between 6.56% to 7.9% lower than today’s difficulty rating on or around Dec. 5, 2022. Presently, the estimated mining difficulty reduction could be the largest difficulty drop the network has seen in 2022. Since Nov. 30, up until Dec. 2, 2022, roughly 80 exahash of hashpower has been removed from the network’s total hashrate.

Tags in this story
Bitcoin, Bitcoin (BTC), Bitcoin Miners, Bitcoin mining, bitcoin mining sector, block rewards, block times, Blocks, braiins.com, cash reserves, Change in Difficulty, Cost of Production, Cryptoslate, difficulty change, difficulty retarget, glassnode, Hash Price, Macromicro.me, Miners, mining, Mining BTC, Mining Difficulty, Mining Operations, Mining Pools, Mining Report, pay down debt, selling BTC

What do you think about the current state of Bitcoin’s hashrate? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




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