Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The market structure and trends in a lower time frame were bearish at the time of writing.
- A drop below the USD 87.2 support could send Litecoin as low as USD 80.
Litecoin [LTC] bounced back hard in mid-June, climbing from $70 to $115 in three weeks. The sellers have since taken over. The price drop started as a healthy return to the $92 mark, but lately bears have become increasingly dominant.
Read Litecoins [LTC] Price Forecast 2023-24
The weakness of Bitcoin [BTC] last week has likely contributed to the shift in sentiment in favor of sellers. The technical indicators and price action showed that further losses were likely for LTC.
The bears slowly but surely forced the bulls back
![Litecoin [LTC] prices fall below $90, further short-term losses are expected](https://statics.ambcrypto.com/wp-content/uploads/2023/07/PP-1-LTC-price.png)
Source: LTC/USDT on TradingView
The $100 zone marked in red marked the supply zone over the 1 day time frame. The 4-hour chart above showed that this region was tested as support in early July, but the buyers were unable to defend it. Then it turned into resistance in mid-July.
After the sharp drop to the $92.8 level on July 14, the H4 market structure was bearish. LTC failed to move past $95 and posted lower lows over the past ten days. This suggests that the $87.65 support will falter soon as well.
The CMF stood at -0.05 and was poised to show significant capital outflow from the market. The RSI signaled strong bearish momentum with a reading of 33.3.
The support levels (light yellow) were Fibonacci retracement levels based on last month’s rally from $70 to $115. Therefore, the $87.65 and $80.22 represented crucial support levels that LTC bulls need to defend to maintain some bullishness on the higher timeframes.
Bearish sentiment strengthened over the weekend
![Litecoin [LTC] prices fall below $90, further short-term losses are expected](https://statics.ambcrypto.com/wp-content/uploads/2023/07/PP-1-LTC-coinalyze.png)
Source: Coin analysis
On July 21, Litecoin was trading at USD 94. In the next 72 hours, prices fell below the $92.88 and $91.5 levels, which were near-term support levels. As a result, the Open Interest cascade decreased and the spot CVD also decreased.
How much is 1,10,100 LTC worth today?
Therefore, sentiment in the lower time frame was strongly bearish as selling pressure mounted and longs were discouraged. Combined with the price action over the past ten days, it seemed likely that Litecoin would drop below $87.65 to reach $80.22.
