• Litecoin [LTC] is in a bearish zone, with the key roadblock at $103.5 and only two months to its halving event in August.
• A weak Bitcoin [BTC] could hurt LTC’s short-term prospects.
• Long positions were wrecked than short positions, confirming the short-term bearish bias.
Why Litecoin Might Falter At This Bearish Zone
Rejection from FVG Zone
Litecoin [LTC] was yet to reverse the losses seen early in the week, rejecting an FVG (fair value gap) zone of $88.7 – $92.4 (white). This could make the area a solid bearish zone and sellers could camp at this bearish area and attempt to seek gains at $84 or the demand zone below $77.5.
Q1/Q2 Price Ceiling
Above the bearish area lays a bearish order block and supply zone stretching from $95 to $104. The level is also a Q1/Q2 price ceiling, so any move beyond the FVG zone could face another likely pullback from this supply zone unless BTC inflicts a bullish bias on the higher timeframe.
Rising Accumulation/Distribution Indicator
Litecoin has recorded steady accumulation from 8 May, as shown by the rising Accumulation/Distribution indicator. However, the RSI retreated to the lower range in June and was rejected at the median level – elevated short-term selling pressure.
Long Positions Wrecked Than Short Positions
With a weak BTC, long positions were wrecked than short positions – In the past 4 hours before press time, close to $80k worth of long positions have been liquidated while less than $30k short positions were wrecked in the same period – confirming the short-term bearish bias for LTC price action ahead of its halving event in August 2023.
Despite Litecoin’s halving event potentially propping up LTC’s value, it must clear several key roadblocks like Q1/Q2 price ceiling of $104 and rejections from an FVG (fair value gap) zone alongside a weak Bitcoin [BTC]. Any move beyond these zones could face another likely pullback from supply zones unless BTC influences with bullish bias on higher timeframe charts – as evidenced by recent trading data where more long positions are being liquidated than shorts which confirms current market sentiment for LTC price action ahead of its halving event next month