Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.
Litecoin [LTC] surged to $66 final week however confronted a brutal rejection above the vary highs. On the time of writing, the value had slipped under the mid-range mark at $53.9 as properly. In different information, Litecoin’s hash fee has really benefited in current days.
Ethereum [ETH]’s transfer to Proof of Stake (PoS) might have had a optimistic impact. On decrease timeframes, this optimistic impact may not translate to cost good points over the following day or two. Coinglass data confirmed that the Lengthy vs Shorts ratio was barely in favor of the shorts over the previous 24 hours.
LTC- 4-Hour Chart
Supply: LTC/USDT on TradingView
The quick positions had sturdy technical proof behind them. The worth noticed a rejection on the vary (yellow) highs close to $65. The mid-range (dashed yellow) was overwhelmed by promoting strain as properly.
The $53-$52 zone witnessed a number of candlewicks attain towards it in late August and early September. This marked the zone as a major pocket of liquidity the place demand has been seen.
Nevertheless, the previous couple of days of buying and selling have seen the sellers assume the driving place. Therefore, the bias for the following few days can be bearish. This might change if LTC can reclaim the $53 zone as assist.
LTC- 1-Hour Chart
Supply: LTC/USDT on TradingView
Zooming in to a decrease timeframe, we will see a one-hour bullish engulfing candle. The hours after this candle fashioned noticed the earlier bearish market construction come into play, as a pointy plunge under $52.5 occurred. The worth went on to dip as little as $50.17.
Due to this fact, the candle was marked as a bearish order block. Moreover a set of Fibonacci retracement ranges (yellow) have been drawn for this transfer right down to $50.17. They confirmed the 78.6% retracement stage to lie at $52.98.
This stage acted as resistance as properly, and LTC continued to dip after a retest of the order block. Quick positions can look to take revenue on the $50.17 lows, and bold merchants may even goal $49.33.
Conclusion
The formation of a bearish order block and the confluence it had with the Fibonacci retracement ranges meant that one other drop to $49 was possible. Your complete transfer additionally occurred beneath the longer-term key stage of assist on the mid-range $54 mark. Accordingly, the bearish transfer might proceed over the following day.