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- Sustained selling pressure saw LTC form higher lows on the 12-hour timeframe.
- Short positions stood at a greater advantage on the exchange long/short ratio.
Bitcoin’s [BTC] faltering price action from the $31k price zone echoed across the markets. This was reflected in Litecoin’s [LTC] rapid price rally between 30 June to 2 July experiencing stiff bearish pressure at the $113.7 resistance level.
Read Litecoin’s [LTC] Price Prediction 2023-24
This reversed LTC’s momentum on the 12-hour timeframe with sellers dominating its current price movements. With the LTC halving just 12 days away, traders seem to be adopting a cautious approach.
Price movement points to worrying signs for bulls
Source: LTC/USDT on Trading View
Following the bullish price rejection at the $103.4 resistance level on 13 July, bulls have struggled to find an entry point back into the market. A price consolidation on the lower timeframes between $88-$90 could give bulls a shot at some sustained gains.
Meanwhile, the trend remained bearish with the price forming higher lows on the downward movement. The on-chart indicators highlighted insufficient bullish conviction for a significant price move.
Despite the Relative Strength Index (RSI) making a notable push, it stayed under the neutral 50 to signal a lack of strong buying pressure. The Moving Average Convergence Divergence (MACD) was also bearish, although it looked primed for a bullish crossover. Together the volume indicators showed that while demand was present for LTC, it wasn’t enough for a sustained rally after the bearish retracement.
Bearish sentiment in the futures market
Source: Coinglass
The $12.2 million difference between buyers and sellers on the long/short ratio revealed strong bearish sentiment in the futures market. Data from Coinglass showed that shorts controlled 54.47% of all open LTC contracts in the four-hour timeframe. This hinted that market speculators were actively betting on further price dips for LTC.
How much are 1,10,100 LTCs worth today?
This was also reflected in the liquidation data within the same period. Longs suffered 94.75% of the total liquidations. While bears seemingly held the upper hand, a rebound from bulls could keep price in a consolidation phase before the next major move.
Source: Coinglass
