Analysis
Are LTC bears replacing the bulls as this trajectory sets in motion?
A look at Litecoin’s performance of the last few days displayed some disappointment. The altcoin continued witnessing a strengthening selling pressure took LTC below $95.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Sustained selling pressure saw LTC form higher lows on the 12-hour timeframe.
- Short positions stood at a greater advantage on the exchange long/short ratio.
Bitcoin’s [BTC] faltering price action from the $31k price zone echoed across the markets. This was reflected in Litecoin’s [LTC] rapid price rally between 30 June to 2 July experiencing stiff bearish pressure at the $113.7 resistance level.
Read Litecoin’s [LTC] Price Prediction 2023-24
This reversed LTC’s momentum on the 12-hour timeframe with sellers dominating its current price movements. With the LTC halving just 12 days away, traders seem to be adopting a cautious approach.
Price movement points to worrying signs for bulls
Source: LTC/USDT on Trading View
Following the bullish price rejection at the $103.4 resistance level on 13 July, bulls have struggled to find an entry point back into the market. A price consolidation on the lower timeframes between $88-$90 could give bulls a shot at some sustained gains.
Meanwhile, the trend remained bearish with the price forming higher lows on the downward movement. The on-chart indicators highlighted insufficient bullish conviction for a significant price move.
Despite the Relative Strength Index (RSI) making a notable push, it stayed under the neutral 50 to signal a lack of strong buying pressure. The Moving Average Convergence Divergence (MACD) was also bearish, although it looked primed for a bullish crossover. Together the volume indicators showed that while demand was present for LTC, it wasn’t enough for a sustained rally after the bearish retracement.
Bearish sentiment in the futures market
Source: Coinglass
The $12.2 million difference between buyers and sellers on the long/short ratio revealed strong bearish sentiment in the futures market. Data from Coinglass showed that shorts controlled 54.47% of all open LTC contracts in the four-hour timeframe. This hinted that market speculators were actively betting on further price dips for LTC.
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This was also reflected in the liquidation data within the same period. Longs suffered 94.75% of the total liquidations. While bears seemingly held the upper hand, a rebound from bulls could keep price in a consolidation phase before the next major move.
Source: Coinglass
