Disclaimer: The findings of the following article are the sole opinion of the writer and should not be taken as investment advice
The Bitcoin market has witnessed a sell-off at the time of writing. The largest cryptocurrency fell from $19,491 to $19,134. This also resulted in the falling price of altcoins like Litecoin. This sudden fall appeared at the end of a bearish pattern. The current price of Litecoin was $81.69, which has been a recovery effort after the fall.
However, after this fall, the short-term market has been visibly indecisive.
Litecoin one-hour chart
Source: LTC/USD on TradingView
The one-hour chart of Litecoin [LTC] was noting the price of the digital asset rise higher along the ascending channel. The price broke down out of the ascending channel from $85.05 and dropped to $80.35. However, the price of the asset rebounded from this point and has been noting a constant push and pull from traders.
Since the coin has just witnessed a drop, the value of the asset may move between $80 and $82 in the short-term.
Reasoning
The 50 moving average had been indicating bullishness in the LTC market, however, the drop may reverse this trend. The Relative Strength Index had been moving towards the overbought zone, as the price increased along the ascending channel. With the sudden fall, the price has reached a state of equilibrium wherein the buying and selling pressures have been equalized. This also suggested a sideways movement of the coin.
The Awesome Oscillator has been reflecting this reduced momentum in the market. The earlier bullishness was indicated as the AO remained above the zero-line, indicating the short-term momentum was increasing. However, as the price broke down, the short-term momentum was decreasing more rapidly than the long-term.
Conclusion
As the price of the digital asset moves within the current range, it may be an indication of consolidating the price of LTC. The bullishness in the market was escaping while the bearishness emerges.
