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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. 


Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/
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