Compared to 2022, today’s negativity and low morale shouldn’t be seen as a major issue. At least, there are no absurd ideas suggesting that the Bitcoin price will go to zero. Bitcoin is hovering around its 2021 peak, and altcoins are far beyond their last bear market lows. However, for an old and popular altcoin, losses could deepen, even if temporarily.
Litecoin (LTC)
LTC price has fallen below the critical $80 support and is trading at $78.6 at the time of writing. Although the daily loss is 2%, losing this important support level is bad. The support and resistance levels marked on the four-hour chart are potential test areas we might see in case of increased volatility. If the current negativity continues, the LTC price could first drop to $75. Here, significant liquidations will be triggered, leading to more losses for the bulls.
If the price continues to close below the Ichimoku Cloud, the likelihood of a correction below $75 will strengthen. Investor behavior shows that short-term wallet volumes are increasing. This indicates that more investors are looking to avoid the decline and take advantage of interim jumps.
LTC Predictions and Comments
Five days ago, addresses holding LTC for 1 to 3 months made significant sales. This reflects the exit of investors who were expecting a rise in 2024 and had boarded the train quite late. Three months ago, the medium-term outlook for cryptocurrencies was very different. Rallies were expected in altcoins with the approval of the ETH ETF, and ETF inflows were expected to multiply.
Moreover, the inflation data had not worsened this much. It seems that this group of investors has run out of patience and preferred to make significant sales and watch from the sidelines. So what happens now? If BTC does not permanently move away from the $61,000 support, we could see more LTC sales with new support tests.
If the BTC price starts making daily closes below $61,000, $75 will be an easy target for LTC. In the bearish scenario, if Bitcoin price drops to $59,000, LTC could fall to $70.
