LTC bulls find their path above $70 blocked for now — what happens next?
Litecoin faced resistance at the $68-$70 region since late August and was in a consolidation phase below $70 at press time- here's why that's set to continue this week.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Litecoin bulls attempted to break past an HTF range but formed an LTF range beneath $70
- Despite the lack of a trend, LTC presented trading opportunities at key near-term levels
Litecoin [LTC] saw its prices climb from $60 to $70 in the past ten days, with the local high at $72.89. A new high for the network’s hash rate could have triggered the uptick in prices.
Read Litecoin’s [LTC] Price Prediction 2023-24
A previous analysis of LTC by AMBCrypto noted that a short-term dip from $71 to $65.2 was a likelihood last week. This idea was nearly validated when prices reached $65.6 but saw a bounce thereafter.
The short-term range formation pointed toward a phase of consolidation
Since 22 August, LTC faced resistance at the $68-$70 region. It formed a range (orange) that extended from $68.35 down to $57.8. In the past week, the price consolidated around the range high. It formed a new lower timeframe range (white) from $70.88 to $66.12.
At the time of writing the market structure on the one-hour chart was bullish. The Relative Strength Index (RSI) was above neutral 50 and signaled a move higher was possible. The On-Balance Volume (OBV) reinforced this idea with its uptrend, showing increased buying volume over the past few days.
A dip to the $66-$67.5 zone could offer a short-term buying opportunity targeting the range high. Short sellers could also enter LTC trades if the price reaches the $71 mark and faces rejection.
Liquidation levels showed where price reversals could occur
There were millions of dollars worth of short liquidations situated just above $70 and stretched up to $71.6. A bearish reversal after a visit to these levels was a possibility. However, the Cumulative Liq Levels Delta was marginally positive.
Is your portfolio green? Check the Litecoin Profit Calculator
Hence, the market could take a few days to entice traders into leveraged positions before hunting their stop-loss orders. This meant LTC was likely to trade within the aforementioned range this week without seeing a breakout.
