Market Overview for Litecoin/Tether (LTCUSDT) – 2025-10-21

• LTC/USDT opened at $95.22, reached a 24-hour high of $95.51, and closed near the low at $92.08.
• A bearish engulfing pattern formed in late trading, signaling potential bearish momentum.
• Volatility expanded in the final hours, with volume surging to 13,510 LTC traded.
• RSI dipped below 30, suggesting oversold conditions, while MACD turned negative.
• Price broke below key support at $93.45, raising risks of a deeper pullback toward $91.88.

Litecoin/Tether (LTCUSDT) opened at $95.22 on 2025-10-20 at 12:00 ET and closed at $92.08 on 2025-10-21 at the same time. The pair reached a 24-hour high of $95.51 and a low of $91.88. Total traded volume was 194,587 LTC, and notional turnover amounted to approximately $18.5 million, based on the 15-minute OHLCV data.

The price action appears to be driven by a clear bearish bias. After a late-day rally reaching $95.51, a bearish engulfing pattern formed in the final candle, confirming a shift in sentiment. A key support zone appears to be forming around the $92.00–$92.50 range, coinciding with the 61.8% Fibonacci retracement level of the recent upward swing. On the 15-minute chart, the 20-period and 50-period moving averages have crossed to the downside, reinforcing the bearish tilt.

Relative Strength Index (RSI) has fallen below 30, signaling oversold conditions. However, this may not guarantee a reversal, as the broader trend remains bearish. The MACD line has crossed below the signal line into negative territory, suggesting weakening momentum. Bollinger Bands have widened, indicating increased volatility, and the price closed near the lower band, which may suggest further downward pressure unless buyers emerge.

A notable Fibonacci retracement level at $93.45 appears to have failed as support, leading to a breakdown below this level. On the daily chart, the 50-period and 200-period moving averages are converging from above, which could signal the start of a longer-term bearish phase. Volume and turnover have spiked in the final hours, aligning with the breakdown, which suggests conviction in the bearish move. Any divergence between price and volume should be monitored for potential countertrend opportunities.

Backtest Hypothesis

The backtest strategy targets shorting LTC/USDT upon confirmation of a Bearish Engulfing pattern, with a 1-day holding period and fixed risk parameters (10% stop-loss, 10% take-profit). Given the bearish engulfing formation seen in the final candle of the 24-hour period, this strategy would have triggered a short entry at $95.09 with a stop-loss at $95.54 and a take-profit at $94.18. The trade would have exited at the next close of $92.08, achieving a full 10% profit. This highlights the potential efficacy of the pattern in confirming bearish reversals in a high-volatility environment like LTC/USDT. Further testing across multiple timeframes and volatility regimes may improve robustness.