Bitcoin declined by more than 8% at the start of the new trading week, once again setting off a wave of bearish sentiment across the broader cryptocurrency market. In this analysis, attention shifts to one of the affected assets — Litecoin. The coin has recently formed a notable technical feature that could play a decisive role in determining its next significant movement.

Litecoin technical analysis

LTCUSD - 1 Day Time Frame

After establishing the broader context, the next step is to define the nature of price flow. In general, cryptocurrency market movement can be categorized into corrective and impulsive phases. On the attached chart, Litecoin’s corrective flow is depicted using two parallel blue trendlines. Its defining feature is the minimal upward progress over an extended period, indicating that bearish price delivery remained dominant.

The move that followed continued within this wider context but introduced one important change: it shifted into impulsive price flow. In this phase, the price covered a much larger distance in a noticeably short time. This shift created a significant resistance zone, which now acts as the primary deciding parameter in Litecoin’s technical outlook.

If the market initiates an equally strong bullish move and achieves a close above the orange resistance zone on the four-hour timeframe, the broader context could turn bullish again, opening the possibility for traders to evaluate buy-side setups. A further supportive element is the recent sweep of Sell-Side Liquidity, which completes the initial structure and increases the probability of a potential bullish reversal.

Should this setup be confirmed in full, further updates will follow.