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Continued selling pressure caused LTC to hit higher lows in the 12-hour time frame. Short positions had a greater advantage on the exchange long/short ratio.
From Bitcoin [BTC] faltering price action from the $31k price zone reverberated across the markets. This was reflected in that of Litecoin [LTC] rapid price rally between June 30 and July 2 with strong bearish pressure at the $113.7 resistance level.
Read Litecoins [LTC] Price Forecast 2023-24
This reversed LTC’s momentum on the 12-hour timeframe, with sellers dominating the current price movement. With the LTC halving in 12 days, traders appear to be cautious.
Price movements point to worrying signals for bulls
After the rejection of the bullish price at the $103.4 resistance level on July 13, bulls have struggled to re-enter the market. A price consolidation on the lower timeframes between $88-$90 could give bulls a chance for sustained gains.
Meanwhile, the trend continued to be bearish, with the price forming higher lows during the downward move. The indicators on the chart indicated insufficient bullish conviction for a significant price move.
Despite providing a notable boost, the Relative Strength Index (RSI) remained below the neutral 50, indicating a lack of strong buying pressure. The Moving Average Convergence Divergence (MACD) was also bearish, although it appeared poised for a bullish crossover. Together, the volume indicators showed that while there was demand for LTC, it was not enough for a sustained rally after the bearish retracement.
Bearish sentiment in the futures market
The $12.2 million difference between buyers and sellers on the long/short ratio revealed strong bearish sentiment in the futures market. Data from Coinglass showed that shorts controlled 54.47% of all open LTC contracts in the four-hour time frame. This hinted that market speculators were actively betting on further price declines for LTC.
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This was also reflected in the liquidation data within the same period. Longs suffered 94.75% of total liquidations. While bears seemingly had the upper hand, a bull rebound could keep the price in a consolidation phase for the next big move.
This post Will LTC bears replace the bulls as this trajectory is set in motion?
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