On Thursday, 18 April, Bitcoin [BTC] bounced to $89.5k before sinking to post a new low of $84.5k. This volatility saw Litecoin’s price [LTC] drop 7.5% in 5 hours, with the altcoin posting a new lower low at $72.64. At the time of writing, it was trading at $75.89.
Litecoin bulls gave up control of a key long-term support zone at $80-$84 over the past two weeks of trading. In fact, a recent AMBCrypto report highlighted the importance of this region as a long-term support.
The same report also pointed out that the bulls had little fighting strength and were barely holding on. LTC’s inclusion in Bitwise’s 10 Crypto Index ETF [BITW] gave it no sizeable boost on the price charts either.
Assessing the strength of the next downward Litecoin trend
Using the Fixed Range Volume Profile tool for 2025, the Value Area High and Value Area Low were determined to be at $120 and $83. After the first week of October, when LTC had been trading above the year’s VAH, the 10/10 crash occurred.
The OBV showed that the buyer-seller equilibrium back then shifted to an almost total seller domination. Litecoin saw volatility in November and appeared to defend the $80-support zone. However, it was too little to stop the downtrend.
With the loss of the $80-level, $73.4, $66.5, and $59.6 were the next long-term supports that Litecoin bears would target.
The 1-month lookback period liquidation heatmap showed that the liquidity around $73 was swept. A bounce was in progress. It may be possible that this bounce would reach the magnetic zone at $82-$83.
The less likely scenario ahead for Litecoin
This would be the bullish path. The magnetic zone at $88 is filled with short liquidations and could pull prices towards it. A market-wide sentiment shift and a cascade of short liquidations could see an LTC breakout past $90, reclaiming a bullish trend.
Traders’ call to action – Remain bearish!
The altcoin has just recently lost a significant support level. Its trend and price structure were bearish, and there was no appreciable buying pressure on the higher timeframes.
The $80-$84 area, if retested, would be too strong to overcome. Traders can look to short the bounce, targeting the support levels at $66 and $59.
Final Thoughts
- Over the past two weeks, Litecoin bulls fought to defend the $80-demand zone but lacked the strength to succeed.
- The selling pressure since the second week of October has not let up, with recent Bitcoin losses cementing bearish conviction.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
