Litecoin (LTC) has just broken below the critical $80 low, signaling that bearish pressure is firmly in control. Currently trading at $79—just beneath the swing low at $80—LTC is also sitting below the monthly open at $82.98. With the bears flexing their dominance, traders are left wondering: Where does the price head next? What’s the target for the bears, and where can bulls find an opportunity to re-enter the market? Let’s dive into the charts, pinpoint the key levels, and craft a plan that could turn this downturn into a golden opportunity.
The Current Market Picture
LTC’s recent breach of $80 confirms the bearish momentum that’s been brewing since its peak at $147.06 on December 5, 2024. Litecoin enjoyed a stellar 122-day bullish run, soaring +195% from $49.80 to high at $147.06. Now, we’re on the 122nd day of a downtrend—a poetic symmetry that hints at a potential turning point. The question is: where will this descent find its floor, and how can we position ourselves for what’s next?
Support Zone: The $70 Fortress
To identify a robust support zone, we need confluence—multiple technical factors aligning to form a level that’s tough to crack. Here’s what the chart reveals:
Together, these factors create a $70 support zone that’s brimming with confluence. It’s not just a random level—it’s a fortress where bulls could mount a serious stand.
Long Trade Setup:
Execution Tip: Watch for bullish signals in the $70-$75 range—candlestick pattern, volume spikes, or RSI divergence. This isn’t about chasing; it’s about precision.
Resistance Zone: The $100 Battleground
If bulls reclaim control and push LTC higher, the $100 psychological level looms as a major resistance zone. Here’s why it’s a HOTSPOT:
A rally to $100 wouldn’t just be a recovery—it’d be a statement. A clean break above could hint at a broader trend reversal, but until then, it’s a ceiling to respect.
What’s Next? Bears vs. Bulls
For now, the bears are driving LTC lower, with the break below $80 opening the door to the $70 support zone. That’s their likely target—a level where selling pressure could exhaust itself. For bulls, $70 isn’t just a floor; it’s a launchpad. The DCA long setup offers a low-risk, high-reward entry.
Wrapping It Up
Litecoin’s drop from $147.06 to $79 has been brutal, but the chart is screaming opportunity. The $70 zone—backed by Fibonacci, levels, volume, and order blocks—is where bulls could turn the tide. With a DCA entry at around $73/72, SL below $68, and a main target at $100, you’ve got a trade setup that could deliver a 5:1 payoff. Meanwhile, $100 stands as the bears’ next big test if momentum shifts.
So, will you wait for LTC to hit $70 and strike, or watch the action unfold? The levels are clear—now it’s your move. Use this analysis to sharpen your edge, and let’s see where Litecoin takes us in the days, weeks, and months ahead.
________________________________________
If you found this helpful, leave a like and comment below! Got requests for the next technical analysis? Let me know, I’m here to break down the charts you want to see.
Happy trading =)
The Current Market Picture
LTC’s recent breach of $80 confirms the bearish momentum that’s been brewing since its peak at $147.06 on December 5, 2024. Litecoin enjoyed a stellar 122-day bullish run, soaring +195% from $49.80 to high at $147.06. Now, we’re on the 122nd day of a downtrend—a poetic symmetry that hints at a potential turning point. The question is: where will this descent find its floor, and how can we position ourselves for what’s next?
Support Zone: The $70 Fortress
To identify a robust support zone, we need confluence—multiple technical factors aligning to form a level that’s tough to crack. Here’s what the chart reveals:
- Fibonacci Retracement: Using the Fib tool from the 2024 low at $49.80 to the high at $147.06, the 0.618 retracement at $86.95 has already been lost, turning our focus to the 0.786 level at $70.61. This deep retracement is a classic spot for reversals, making it a prime candidate for a support zone.
- Yearly Level: At $70.14, this pivot is nearly identical to the 0.786 Fib level, adding significant weight to the area.
- Volume Profile: The Point of Control (POC) from a 1.5-year trading range sits right around $70, just above the Fib level. This is the price with the highest traded volume over that period—a natural magnet for price action.
- Yearly Order Block: Visualized as a green channel, this order block reinforces the $70 zone, suggesting past institutional buying interest or significant support.
Together, these factors create a $70 support zone that’s brimming with confluence. It’s not just a random level—it’s a fortress where bulls could mount a serious stand.
Long Trade Setup:
- Entry Strategy: Use a Dollar-Cost Averaging (DCA) approach to build your position. Start with small buys around $75, laddering down to $70, and increase your position size as price nears the core of the support zone. Aim for an average entry of $73/72.
- Stop Loss (SL): Set it below $68 to protect against a deeper breakdown while giving the trade room to breathe.
- Take Profit (TP): First Target: $80 (the swing low and monthly open not far off). Main Target: $100 (a key psychological and resistance zone).
- Risk-to-Reward (R:R): With an average entry at $73 and SL at $68, you’re risking $5 to gain $27 (to $100)—a stellar 5:1 R:R or better. This is a high-probability setup that rewards patience.
Execution Tip: Watch for bullish signals in the $70-$75 range—candlestick pattern, volume spikes, or RSI divergence. This isn’t about chasing; it’s about precision.
Resistance Zone: The $100 Battleground
If bulls reclaim control and push LTC higher, the $100 psychological level looms as a major resistance zone. Here’s why it’s a HOTSPOT:
- Yearly Open: At $103.28, this level is close enough to $100 to bolster its significance.
- Anchored VWAP: Drawn from the 2024 low at $49.80, the VWAP currently sits around $102.4, adding another layer of resistance.
- Historical Context: The $100 mark has been a recurring battleground, with bulls and bears clashing repeatedly. It’s a price that carries weight.
A rally to $100 wouldn’t just be a recovery—it’d be a statement. A clean break above could hint at a broader trend reversal, but until then, it’s a ceiling to respect.
What’s Next? Bears vs. Bulls
For now, the bears are driving LTC lower, with the break below $80 opening the door to the $70 support zone. That’s their likely target—a level where selling pressure could exhaust itself. For bulls, $70 isn’t just a floor; it’s a launchpad. The DCA long setup offers a low-risk, high-reward entry.
Wrapping It Up
Litecoin’s drop from $147.06 to $79 has been brutal, but the chart is screaming opportunity. The $70 zone—backed by Fibonacci, levels, volume, and order blocks—is where bulls could turn the tide. With a DCA entry at around $73/72, SL below $68, and a main target at $100, you’ve got a trade setup that could deliver a 5:1 payoff. Meanwhile, $100 stands as the bears’ next big test if momentum shifts.
So, will you wait for LTC to hit $70 and strike, or watch the action unfold? The levels are clear—now it’s your move. Use this analysis to sharpen your edge, and let’s see where Litecoin takes us in the days, weeks, and months ahead.
________________________________________
If you found this helpful, leave a like and comment below! Got requests for the next technical analysis? Let me know, I’m here to break down the charts you want to see.
Happy trading =)
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🏆 Mastering Fibonacci for precision trading
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.