Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Litecoin bulls tried to break past an HTF range but formed an LTF range below $70
- Despite the lack of a trend, LTC provided trading opportunities at key short-term levels
Litecoin [LTC] saw prices rise from $60 to $70 over the past ten days, with the local high at $72.89. A new high for the network hash rate could have caused the price increase.
Read Litecoins [LTC] Price forecast 2023-24
Previous analysis of LTC by AMBCrypto found that a short-term dip from $71 to $65.2 last week was likely. This idea was almost validated when prices reached $65.6 but then saw a rebound.
The short-term range formation indicated a phase of consolidation
Source: LTC/USDT on TradingView
Since August 22, LTC has faced resistance in the $68-$70 region. It formed a range (orange) that stretched from $68.35 to $57.8. Over the past week, the price consolidated around the highest level. It formed a new lower time frame (white) from $70.88 to $66.12.
At the time of writing, the market structure on the one-hour chart was bullish. The Relative Strength Index (RSI) was above the neutral 50 and indicated that a step higher was possible. The On-Balance Volume (OBV) reinforced this idea with its uptrend, which has seen increased buying volume in recent days.
A dip to the $66-$67.5 zone could provide a short-term buying opportunity targeting the upper range. Short sellers can also enter LTC trades if the price reaches the $71 mark and is rejected.
The liquidation levels showed where price reversals could occur
Source: Hyblok
There were millions of dollars worth of short liquidations just above $70 and stretching all the way to $71.6. A bearish reversal after visiting these levels was a possibility. However, the Cumulative Liq Levels Delta was marginally positive.
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Therefore, it can take a few days for the market to lure traders into leveraged positions before they start hunting for their stop-loss orders. This meant that LTC would likely trade within the aforementioned range this week without seeing a breakout.
