As the halving approaches Litecoin could plunge like it did in 2015

47 days before the 2015 block rewards reduction, Litecoin's declined by 70 percent following a 590 percent surge.

Now, only 45 days away from this year's halving and up 540 percent, LTC is showing signs that a correction is underway.

Every four years after 840,000 blocks are mined, Litecoin goes through a fixed process called halving that reduces the rewards miners get for mining blocks by 50 percent.

Litecoin went live on Oct. 13, 2011, and since then it has only had one block reward reduction event.

The first halving occurred on Aug. 26, 2015, at a block height of 840,000, which dropped the mining reward from 50 LTC per block to 25 LTC. The halving had a direct impact on the value of the cryptocurrency.

On July 9, 47 days prior the halving, LTC reached its peak and began a 73.2 percent correction.

Litecoin basically spent the following months staggering between $2.87 and $3.24.The 2019 Halving Event.

On Aug. 6, 2019, at exactly block 1,680,000, Litecoin will go through a new halving event where the mining reward will be cut in half, from 25 LTC per block to only 12.5 LTC. Just as it happened in the previous halving, the market valuation of LTC began surging after the low of Dec. 7, 2018, when it was trading at $22.54.

If history repeats itself, LTC could soon pullback to the 200-day moving average just as it did in 2015.

As the halving event approaches, many investors might take the date as a "Take profit" event that could indeed provoke a correction in the market valuation of this cryptocurrency.