- Litecoin’s network registers a recovery in mining difficulty.
- The increased difficulty could benefit the price of Bitcoin.
In the second quarter of 2019, an upward trend was recorded in the cryptomarket, which was attributed to Litecoin. History could repeat itself this year as analysts like Willy Woo predict an upward revival for the market. The trend could be a catalyst that directly benefits the price of Bitcoin.
Litecoin’s price at the time of publication is $47.99 with an upward movement of 5.05% in the last 24 hours and 15.74% in the week. The positive performance of the cryptocurrency, as noted by Willy Woo, is due to the recovery of the mining difficulty.
Impact of Litecoin’s difficulty recovery on the price of Bitcoin
The analyst Willy Woo made a series of tweets on January 6 this year. Woo explains that the link in Litecoin’s mining difficulty is changing its trend, after going through a long period of decline. The Litecoin network had the biggest capitulation in mining positions during the last months of 2019.
Mining Difficulty is the measure that determines how many hashes are required to find a solution that will validate the next block in the blockchain. Upon completion, the miner gets a reward that he receives in the cryptocurrency he is mining. Woo’s observations on the capitulations of miners on the Litecoin network are consistent with the drop in the hash rate of Litecoin during the same period in 2019.
The analyst said that the change in the trend of Litecoin’s mining difficulty ribbon will have a direct and positive impact on Bitcoin’s price performance. Woo wrote:
Litecoin Difficulty Ribbon now in recovery. Should set up a bullish breakout of the bearish channel. I wouldn’t be surprised if LTC leads a bullish breakout of BTC.
Bitcoin, Litecoin and Chainlink with bullish momentum
As CNF reported, Litecoin is among the cryptocurrencies with the biggest gains of the last few hours along with Bitcoin and Chainlink. Analysts such as Su Zhu, director of Three Arrows Capital, attribute the upward movement to the recent conflict between Iran and the United States.
Zhu’s opinion is shared by Mike Novogratz. The billionaire also sees a correlation between events in the Middle East and the rise in the prices of the above mentioned cryptocurrencies. Despite this, the trend reversal needs to be confirmed. It is necessary for Bitcoin to break the resistance at the 8,400 USD mark in order to form a bullish trend.
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The price of Bitcoin is $8,334 USD, at the time the article was published, and has made a 5.69% profit in the last 24 hours. In the weekly chart, the first cryptocurrency by market cap, records a 15.56% gain.