Litecoin falls below $90 as sellers gain strength
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Market structure and lower timeframe trends were bearish at press time.
- A drop below the $87.2 support could see Litecoin fall to the $80 mark.
Litecoin [LTC] rallied hard in mid-June, climbing from $70 to $115 in three weeks. Since then, the sellers have taken over. The drop in prices started as a healthy retracement back toward the $92 mark, but bears have been increasingly dominant recently.
Read Litecoin’s [LTC] Price Prediction 2023-24
The weakness of Bitcoin [BTC] over the past week has likely contributed to the shift in sentiment in favor of the sellers. The technical indicators and price action showed that further losses were likely for LTC.
The bears, slowly but steadily, forced the bulls backwardThe $100 zone highlighted in red demarcated the supply zone during the 1-day timeframe. The 4-hour chart above showed that this region was tested as support in early July but the buyers were unable to defend it. Thereafter, it flipped to resistance in mid-July.
After the sharp drop to the $92.8 level on 14 July, the H4 market structure was bearish. LTC was unable to climb past the $95 mark and posted lower lows over the past ten days. This suggests that the $87.65 support will also falter soon.
The CMF was at -0.05 and was on the verge of showing significant capital flow out of the market. The RSI signaled strong bearish momentum with a reading of 33.3.
The support levels (pale yellow) were Fibonacci retracement levels based on last month’s rally from $70 to $115. Therefore, the $87.65 and $80.22 represented crucial support levels that LTC bulls must defend to maintain some bullishness on the higher timeframes.
The bearish sentiment has strengthened over the weekendOn 21 July, Litecoin was trading at $94. The following 72 hours saw prices drop below the $92.88 and $91.5 levels, which were short-term support levels. This saw the Open Interest cascade lower and the spot CVD fall as well.
How much are 1,10,100 LTC worth today?
Hence, the lower timeframe sentiment was strongly bearish as selling pressure rose higher and longs were discouraged. Combined with the price action over the past ten days, it appeared likely that Litecoin would fall below the $87.65 support to reach $80.22.