Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Litecoin missed a trend on the higher time frame charts.
- A pocket of liquidity just above prices was a place that could soon be tested.
Litecoin [LTC] traded within a range formation for the past two months. At the time of writing, Litecoin was approaching a major resistance level. Even a break from this level would likely not result in a strong bullish move.
Read Litecoins [LTC] Price forecast 2023-24
A recent technical analysis from AMBCrypto shows that LTC was trading near its lowest level in two years. However, Monday’s Bitcoin [BTC] pump meant that LTC made some gains, but these were quickly recovered. Can the bulls repeat the same thing again?
The range formation limited Litecoin’s bullish enthusiasm
Source: LTC/USDT on TradingView
Since mid-September, Litecoin has been trading within a range of $68.3 to $57.8. The mid-level was at $63 and has been tested several times in recent weeks as both support and resistance.
Moreover, there was a bearish breaker block in the $65-$73 zone, which was plotted based on the 1-day price chart. Combined with mid-range resistance, this outlined a large area under bearish rule.
The RSI climbed above the neutral 50 and the market structure was about to turn bullish. In contrast, the OBV continued the downward trend it has been experiencing since September. This reflected a lack of demand in the market.
The liquidation levels showed possible levels that could produce an LTC reversal
Source: Hyblok
The Cumulative Liq Levels Delta showed a bullish bias. The metric tracks the cumulative sum of the difference between all long liquidation levels and all short liquidation levels over time. Positive values indicate that there are more long liquidation levels, while negative values indicate that there are more short liquidation levels.
Additionally, there were significant amounts of short liquidation levels to the north, particularly at $63.66 and $64.04. $65.3 was another level that could be tested before a bearish bias occurred.
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The price action and technical indicators showed that there was some possibility for a small upside.
Hyblock’s data was consistent with these findings and indicated more precise levels at which a bearish reversal could occur. If Bitcoin were to repeat its recent move towards the $29.4k level, a bearish Litecoin can be expected in the near term.