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- The Fibonacci retracement levels can be used to take a decent short-trade opportunity.
- The higher timeframe structure also favored the sellers.
Bitcoin took a quick tumble on the price charts once more and spurred the bears in the altcoin market to drive prices lower. Litecoin performed well early in 2023 but its bullishness faded in Q1.
How much are 1, 10, or 100 LTC worth today?
At the time of writing, the chart showed a firm bearish bias for the 12th largest crypto by market cap. It also highlighted a shorting opportunity around the corner- but risk-averse traders might want to avoid it. With the halving less than two months away, has LTC already reached its highest value for the year 2023?
The faint push toward $100 in early June was smacked backward
Source: LTC/USDT on TradingView
While the market structure was bullish on the daily timeframe, the uptrend died in mid-April. At the time of writing, the plunge beneath $75.27 highlighted the structure was bearish on the 1-day timeframe. The H4 structure was flipped bearish on 5 June when LTC dived beneath the higher low at $87.5.
After that move southward, LTC bounced to $91.3 before embarking on another trip lower on the price chart. The Fibonacci retracement levels (yellow) highlighted that this downturn followed the retest of the 50% retracement level.
Similarly, the most recent move downward has its 50% retracement level at $75.2. This level was very close to the $75.27 level, significant on higher timeframes. Hence, a bounce into this area can be used to short Litecoin. Bearish targets include the March low at $65 and December 2022 low at $61.04.
The RSI was below neutral 50 over the past ten days to highlight a strong downtrend in progress. The Directional Movement Index concurred with the RSI’s finding, with the -DI (red) and ADX (yellow) both above the 20 value.
The vast slump in Open Interest showed discouraged bidders
Source: Coinalyze
The sentiment has been dominated by the sellers over the past week. Not just in Litecoin prices but across the market, the trend was not in favor of the buyers.
This was understandable given the uncertainty in the crypto sphere. The spot CVD of Litecoin was steadily falling to show earnest selling activity.
Realistic or not, here’s LTC’s market cap in BTC’s terms
In the past week, the minor bounce from $74 to $78 was accompanied by a slight increase in Open Interest. This paled in comparison to the fall in OI that accompanied the sharp drop in prices. Therefore, Litecoin prices continued to be driven by the sellers.
Credit: Source link
