$LTC
LTCUSDT — Dead-Cat Bounce in Established Downtrend
LTCUSDT is trading at $67.98, showing a minor bounce within a clear and powerful macro downtrend. Every major timeframe—30-day, 90-day, 180-day, and 1-year—is deeply negative. The bounce is encountering immediate resistance at the $69 level, just below the 24h high of $69.69. This is a classic setup to fade weak strength in a bear market.
Trade Plan (Short - Downtrend Continuation)
Entry (Short): $67.50 – $68.50 (on signs of momentum failure and rejection at this resistance zone, such as a bearish pin bar on the 4H chart).
Target 1: $65.00 – $64.50 (previous support level and a minor liquidity zone).
Target 2: $62.00 – $61.00 (major support from 2023 lows and a high-probability target for trend continuation).
Stop Loss: $70.20 (above the recent swing high and the $70 psychological resistance).
My View
The trend is your friend, and the trend here is decisively down. Minor bounces in a structure this weak are opportunities to add short exposure, not signals of a reversal. The most probable path is for this bounce to exhaust quickly, leading to a resumption of the downtrend and a test of lower supports. This setup is for trend traders comfortable with a longer time horizon and a clear bearish bias. Wait for the price to show clear rejection (e.g., a 4H close below $67.80) before entering.
