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
Source: LTC/USDT on TradingView
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.
Source: CoinGlass
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.
