Litecoin fell below the critical support of $80, highlighting the strong selling pressure and bearish sentiment.

  • Selling pressure pushes LTC below critical support levels.

  • The frustration among bulls is highlighted by open interest, which has fallen sharply.

Litecoin’s [LTC] bearish swing has taken it below the psychological level of $80 as bears wiped out all of the altcoin’s second quarter gains. Previously, bulls had high hopes that the halving event would reverse the severe losses that LTC had suffered in July and August.

However, the opposite happened as sellers overwhelmed the market and flipped the critical resistance level of $80. The declining price action of Bitcoin [BTC] led to a sharp drop in the price of Litecoin, which has kept its price below $29,500.

Bulls lose key support level

The psychological $80 level has been a bullish stronghold. Looking south, buying strength at this level in late June led to a significant rally in Litecoin.

As the bearish swing approaches this critical support level, the price report highlights the possibility of another rebound from this level by the bulls. However, the huge selling pressure caused Litecoin to fall below the $80 support level. At press time, LTC is trading at $78, which provides the bears with leverage to gain more gains.

The RSI remains below the neutral 50 and has entered the oversold territory, indicating extremely weak buying pressure. Likewise, the OBV continues to decline, dropping by more than 1 million in the past 24 hours.

The current price action suggests that the bulls might have to wait for the price to reach the $72 support level before bouncing back. This provides sellers with a profit opportunity between $73 and $75.

Bearish sentiment in derivatives markets boosts sellers

Coinalyze’s four-hour open interest (OI) data reveals bearish sentiment in the futures market. The sharp drop in OI from August 8 to 15 suggests that frustrated LTC longs were forced to close their positions.

Likewise, spot CVD continues to decline. This indicates disinterest from buyers, encouraging sellers to open more short positions in the near term.