- Litecoin, in anticipation of its halving occasion, could also be poised for a downturn just like that of 2019.
- Potential short-trade alternatives may be recognized utilizing Fibonacci retracement ranges.
The realm of cryptocurrencies is fraught with uncertainties. With the Litecoin halving event simply across the nook, speculations are rife about its future trajectory, recalling the year-long downtrend skilled in 2019. Litecoin, the twelfth largest cryptocurrency by market cap, confirmed robust bullish habits early this yr, though it was overshadowed by a agency bearish bias as we stepped into Q1.
The upper timeframe construction has constantly favored sellers, illustrated by Bitcoin’s recent plunge that galvanized the bears within the altcoin market, pushing costs decrease. Regardless of this bearish pattern, Fibonacci retracement ranges provide potential for respectable short-trade alternatives.
Nonetheless, it was the surprising push in direction of $100 in early June that the market dynamics took a flip for the more severe. The uptrend ceased abruptly in mid-April and, on the time of writing, the dip under $75.27 signified a bearish construction within the 1-day timeframe. The H4 construction turned bearish on 5 June when Litecoin dipped under the upper low at $87.5.
Following the southern motion, Litecoin bounced again to $91.3, solely to embark on a downward journey as soon as once more. The Fibonacci retracement ranges marked that this downturn succeeded the retest of the 50% retracement stage.
Equally, the current transfer downwards has its 50% retracement stage at $75.2. This stage intently aligns with the numerous $75.27 stage on greater timeframes, indicating a possible to quick Litecoin at this level. Bearish targets embody the March low at $65 and December 2022 low at $61.04.
Litecoin’s destiny has been directed by sellers for the previous week, backed by the spot CVD of Litecoin which demonstrated earnest promoting exercise. However, the minor bounce from $74 to $78 witnessed a marginal improve in Open Curiosity, which was comparatively trivial towards the autumn in OI in the course of the sharp drop in costs.
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