Cryptocurrency

Are you shorting Litecoin [LTC]? You could profit from these levels


  • LTC was in a worth correction mode however in a bullish market construction 
  • Short-term LTC holders have made huge income within the final two days

Litecoin [LTC] placed on an enormous mid-week rally, reaching $83.6, its highest stage since mid-May. At the identical time, BTC regained the psychological $16K mark. However, on the time of writing, BTC had misplaced 1.5% within the final 24 hours, setting LTC for a worth correction.

At press time, it was buying and selling at $75.26 and appeared decided to fall additional. The subsequent new helps could be on the 61.8% and 50% Fib retracement levels if LTC maintains the downtrend. Buybacks from these levels could permit you to lock in income.

78.6% Fib help is about to be damaged: will it go additional down?

Source: LTC/USDT on TradingView

The 78.6% Fib stage was an necessary help zone and a bullish order block line. It was examined a number of instances on the 4-hour chart and could be breached. At press time, the bears threatened a massacre just under this stage. 

Technical indicators additionally recommend the potential for an prolonged massacre because the bears slowly take management. The Relative Strength Index (RSI) has pulled again from the overbought territory with an prolonged downtick. It signifies an enormous drop in shopping for stress that’s slowly permitting sellers to realize momentum. 

In addition, the On Balance Volume recorded a downward pattern, indicating a lower in buying and selling quantity and shopping for stress. Overall, the indications recommend that sellers will acquire floor inside a number of hours or a day. 

In this case, LTC costs could fall additional and discover new help zones between 61.8% ($69.9) and 50% ($65.66). The downtrend of LTC could lengthen if BTC loses its help at $16K and falls additional.  

However, a candlestick shut above the present help ($75.96) would invalidate the above bias. In such a case, LTC could commerce sideways alongside the 78.6% and 100% Fib pocket levels or break by resistance.

Short-term LTC holders are having fun with huge income, however….

1669398355 65 Are you shorting Litecoin LTC You could profit from these

Source: Santiment

The 30-day Market Value to Realized Value (MVRV) is constructive, as per Santiment information. This means short-term LTC holders have posted file beneficial properties since Tuesday, 22 November. This interval additionally coincides with a constructive weighted sentiment.  

However, buying and selling quantity declined, and weighted sentiment slipped into unfavourable territory as of press time. This could point out {that a} worth reversal is imminent, and LTC could head south. 

Short-term LTC buyers ought to subsequently monitor BTC’s efficiency and LTC’s sentiment earlier than buying and selling.

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