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Just as things were starting to look up the market takes a sudden turn to the downside, however, whilst some are fearful others are seeing an opportunity to add to their position. There does not appear to be any particular news that lead to the fall.
The sell off occurred at the break of the prior trading channels lower support with a violent -3.6% move down in one minute at 21:59 UTC. The next 10 minutes looked weak and eventually lead to a cascading sell off of a further 10% of the markets value in under 5 minutes. According to data from coingecko, it appears a total of ~$330m worth of Litecoin traded hands in the first move and a further $1bn upon the capitulation.
The market was swiftly bought back up with a high level of volatility rebounding 9% within the hour. Price, although slightly breaking the prior lows at $62 is now trading at ~$67 making for a -6% intraday close.
The ultimate support at $60 still holds for now, a break of it could see prices tumble to prior support at $40. With price flatlining however, there is no clear trade and this action can just as easily be completely reversed with a market buy from a similarly large market player, forming what has come to be known as a ‘bart pattern’ on the charts.
Indicators remain rather neutral with some leaning bearish as a result of the sheer drop. The price range between $60 and $80 now is now effectively acting as purgatory until we break one way or another.
Prices have also fallen across the entire crypto market yesterday wiping $5Bn of value from the ecosystem, down from $260bn to $255bn. Total value has continued held steady above $240bn since May 2019, a fall below this level may indicate a wider lack of confidence in the entire market and something that could provide valuable insights for a longer trend if it breaks.
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