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Litecoin Price Analysis: A Flash Crash Causes LTC/BTC To Lose 12% In Two Hours

2 mins
Updated by Adam James
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On September 18, the Litecoin price reached a high of ₿0.0078. A slow decrease ensued until September 23. Then, a flash crash occurred and LTC lost 12.7 percent of its value in a span of two hours — reaching a low of ₿0.0064.
LTC Price At the time of writing, the Litecoin price was trading at ₿0.0068. Was this crash the beginning of a long-term downtrend? Keep reading below if you are interested in finding out. For our previous analysis, click here.

Litecoin Price: Trends and Highlights for September 24

  • LTC/BTC suffered a flash crash on September 23.
  • It broke down from an ascending support line.
  • There is support at ₿0.00675 and ₿0.0063.
  • Volume was higher during the decrease than increase.

Litecoin Price Flash Crash

Looking at the six-hour time-frame we can see that LTC has been following an ascending support line since September 5. LTC Price On September 23, the flash crash discussed in the introduction occurred. This caused LTC to break down below the ascending support line. The breakdown occurred with very significant volume — increasing its significance.

Reversal Areas

In order to identify possible reversal areas, we have used a Fibonacci retracement tool measuring the entire upward move. LTC Price The two most significant support areas are found at ₿0.00675 and ₿0.0063. They coincide with previous support levels and the 0.618 and 0.88 fib levels, respectively.

Bullish or Bearish Wick

Looking closer at the crash, we can see that the Litecoin price created a very long lower wick once it reached ₿0.0064. This can either be read as a sign of buying pressure triggering a reversal, or a retracement in response to the prior decrease. In order to determine that, we have charted the 10-minute chart below: LTC Price First, we can see that volume was higher during the decrease than the increase. Additionally, the price has not come close to reaching the opening prices of the decrease. This makes us believe that this is a retracement in response to the prior move instead of the beginning of an upward move.

Future Movement

An outline of possible future price movement is given below: LTC is likely to undergo a slight upward retracement before continuing its downward move and reaching the second support area at ₿0.0063. While it is possible that LTC retraces higher and validates the previous support line, this currently seems unlikely. Telegram

Litecoin Price Summary

On September 23, LTC suffered a flash crash and broke down below an ascending support line. According to our analysis, it is likely to continue decreasing and reach the second support area. The current price position does not allow for the initiation of a profitable trade. If, however, LTC were to retrace and touch the support line, it may be considered a potential sell near ₿0.007. Do you think the LTC price will retrace or continue decreasing? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.  Images are courtesy of TradingView, Shutterstock.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)