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Why Litecoin might falter at this bearish zone

2min Read

More downward pressure could be likely for LTC after rejection from an FVG zone alongside a weak BTC.

Why Litecoin might falter at this bearish zone

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • LTC was yet to reverse the losses seen early in the week.
  • More long positions wrecked as of press time.

Litecoin [LTC] still faces a key roadblock at $103.5 with only two months to its halving event in August. If 2019’s halving event and price action were to be repeated, LTC could expect a massive rally.

Read Litecoin’s [LTC] Price Prediction 2023-24

But history doesn’t always dictate the future. Although the halving could prop up LTC’s value, it must clear the Q1/Q2 price ceiling of $104 to inflict more gains. But a weak Bitcoin [BTC] could hurt such an LTC prospect in the short term. 

LTC’s uptrend blocked a key bearish zone

Source: LTC/USDT on TradingView

A recovery attempt after a sharp fall from $95 was thwarted near $89. Price has been reacting to $89 for a while now, swinging between support and resistance. However, the level aligned with an FVG (fair value gap) zone of $88.7 – $92.4 (white). 

This could make the area a solid bearish zone. A recent recovery attempt was stalled in the FVG zone, pushing the price below $89 at press time. As such, sellers could camp at this bearish area and attempt to seek gains at $84 or the demand zone below $77.5. 

Above the bearish area lays a bearish order block and supply zone stretching from $95 to $104. The level is also a Q1/Q2 price ceiling. So, any move beyond the FVG zone could face another likely pullback from this supply zone unless BTC inflicts a bullish bias on the higher timeframe. 

In the meantime, LTC recorded steady accumulation from 8 May, as shown by the rising Accumulation/Distribution indicator. However, the RSI retreated to the lower range in June and was rejected at the median level – elevated short-term selling pressure. 

Longs discouraged

Source: Coinglass

With a weak BTC, long positions were wrecked than short positions. In the past 4 hours before press time, close to $80k worth of long positions have been liquidated. But less than $30k short positions were wrecked in the same period, confirming the short-term bearish bias. 

Is your portfolio green? Check out the LTC Profit Calculator 

Ergo, the confluence area of $89 and the FVG zone could become a key bearish zone if the short-term bearish bias persists across the board. 


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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