Litecoin (LTC) suffered a strong rejection above range highs after its price soared to £58 last week. At £47.4 as of press time, the price had also fallen below the mid-range mark. Meanwhile, LTC hashrate has improved recently.
According to data, the long vs short ratio for the last 24 hours was somewhat in favour of the shorts.
The short positions were supported by solid technical data. The price was rejected at the range highs near £57.1. Selling pressure was also too great for the mid-range.
In late August and early September, several candlewicks reached toward the £46.6-£46.1 zone. This designated the area as a sizable liquidity pocket where demand has been observed.
In contrast, the sellers have taken control of the market over the last few trading days. In light of this, the bias for the coming days would be bearish, unless LTC manages to reclaim the £46.6 zone as support.
A one-hour bullish engulfing candle is found on a lower timeframe. The preceding bearish market structure came into play in the hours after the formation of this candle, with a sharp decline below £46.1. Later, the price fell as low as £44.1.
This marked the candle as a bearish order block. According to a set of Fibonacci retracement levels for this decline to £44, the 78.6% retracement level appeared to be at £46.6.
After a retest of the order block, the altcoin’s price continued to drop as this level also served as resistance. The lows of £44.1 can be the target for short positions, with £43.4 also being a potential target for ambitious traders.
Another decline to £43.1 was likely due to the establishment of a bearish order block and its confluence with the Fibonacci retracement levels. This took place beneath the key longer-term support level at the mid-range £47.5 mark. As a result, the bearish move may extend.