- Litecoin registered a bid imbalance across multiple depth ranges, signalling a bullish trend
- As a result, LTC’s bullish momentum swept the low-leverage liquidity cluster above after the breakout
Litecoin (LTC) saw a noticeable bid imbalance across various depth ranges in its order book, notably at 1% and 5%. This imbalance was when bids outweighed asks, alluding to robust buying interest that ignited a slight bullish trend on the charts.
This trend culminated after LTC’s price peaked at approximately $130 on the charts. Liquidity dynamics complemented the bullish outlook too. Prior to the same, the altcoin faced low leverage, limiting aggressive price movements.
However, as bullish sentiment built up, evident from the dense buying clusters and a liquidity sweep past $125, the price responded by climbing.
Source: Hyblock Capital
This liquidity sweep, wherein accumulated buy orders overtook available sell orders, propelled the price further up the charts.
These collectively highlighted how disparities in bid and ask volumes at critical price levels, alongside the active management of leverage and liquidity, could influence LTC’s trajectory.
In fact, the ongoing uptrend, supported by strong buying pressure and liquidity absorption, could pave the way for sustained bullish momentum across Litecoin’s market.
Price prediction
A further analysis of the 4-hour chart revealed that LTC successfully breached the upper boundary of a descending trend channel – A key bearish structure it had been adhering to over the past few weeks.
The breakout pushed the price of Litecoin from a low of around $119 to a peak at approximately $126.54. Its upward movement was further validated by the MACD indicator – Showing a significant divergence from the Signal line, moving from negative to positive territory.
The histogram also expanded – A sign of increasing bullish momentum. This transition in the MACD can often be interpreted as a bullish signal, supporting the notion of a sustainable uptrend.
Source: Hyblock Capital
If LTC maintains its position above the critical resistance level at $120, the path could be clear for further gains towards the $140-level. This would be in line with past trends in similar setups, where consolidating above key resistances has often sparked further price rallies.
Conversely, if LTC fails to sustain its position above $120, it could fall back into the descending channel, negating the bullish outlook. This could lead to a retest of lower support levels, potentially down to around $115, if the sellers regain control.
Hence, holding above $124 is crucial for LTC’s short-term price direction. Only then can it target $140 and higher.
