Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation.
Coinglass data confirmed $364 million price of liquidations over the previous 24 hours. This got here within the wake of a 7% drop in Bitcoin’s [BTC] value inside the previous day.
Litecoin [LTC] adopted within the footsteps of Bitcoin, alongside the remainder of the altcoin market. The longer-term view for Litecoin was to search for alternatives inside the vary LTC established over the previous three months.
LTC- 1-Day Chart
Supply: LTC/USDT on TradingView
The vary (yellow) that Litecoin established in Might and June remained unbroken. Furthermore, the mid-point of the vary lay at $54. On the time of writing, LTC appeared to slide beneath the midpoint and towards the help at $52. This help degree was solely a short-term one, and Litecoin might simply plunge additional.
A each day session shut beneath the $54 mark would open up a shorting alternative. The quick positions can set their cease losses simply above the $55 mark. Take-profit targets could be a revisit of the $42-$44 space.
Rationale
Supply: LTC/USDT on TradingView
The Relative Power Index (RSI) on the each day chart has oscillated from 60 to 40 over the previous two months. This indicated the shortage of a powerful pattern behind Litecoin on the each day timeframe. Given the formation of the vary, this discovering was coherent. It additionally supported the concept a escape from the vary was not but seen.
The Stochastic RSI fashioned a bearish crossover in overbought territory and plunged decrease. Mixed with the RSI’s fall beneath impartial 50, the momentum behind LTC has flipped to bearish.
The On-Stability Quantity (OBV) made some good points in August however was unable to pierce a resistance degree from Might. It confronted rejection at this degree as soon as extra and fell decrease. Sellers had been dominant as soon as extra and additional losses out there had been possible.
Conclusion
A shopping for alternative would come up on a revisit to the $42-$44 space. The chance-reward could be significantly better at that time for longs. Within the subsequent week, Litecoin has a bearish bias if it can’t climb again above the $54 mark.
Bitcoin was not significantly sturdy both, but it surely did have help close to the $18.5k and $17.8k ranges. A bounce for Bitcoin might see some aid for Litecoin as properly.
