Bitcoin and Litecoin Awaiting Consolidation Breakouts

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Bitcoin and Litecoin Awaiting Consolidation Breakouts

Both cryptocurrencies bitcoin and litecoin have been consolidating since last week, and continue to do so as we head into the weekend.

Bitcoin (BTCUSD) 1H Chart 5/29
bitcoin 1h chart 5/29
(click to enlarge)

The 1H bitcoin chart shows a market that has been slightly bearish this week as price retreated from about 243 to about 235. Within this range, the central pivot is around 239, and btcusd has been trading under this pivot for most part of the week. Price spent more time under the cluster of 200-, 100-, and 50-hour simple moving averages than above them. The RSI spent more time under 50 than above. These are signs of slight bearish bias.

However, as we end the week, price action flattened above 235. Now, a break above 237.50 would put pressure on the 239 central pivot A break above 239 would bring bullish bias into the picture and put pressure on the 243 high.

Now, a break below 234-235 would open up further bearish outlook, with the support pivot at 229 in sight.

Litecoin (LTCUSD) 1H Chart 5/29
litecoin 1h chart 5/29
(click to enlarge)

After last week’s surge to 1.94, litecoin has been consolidating above 1.75. There was a point this week, when price threatened to break above the consolidation structure, but the structure remained sideways after a failure to push above the 1.90 pivot. As we move into the weekend, price action is threatening to fall towards the 1.75 support. A break below 1.75 would open up the 1.50-1.55 area. This would be a target using a projection of the width of the current range. The 1.50 handle was also a previous resistance that could turn into support if litecoin has started an uptrend.

Now, if price breaks above 1.90, we might already have enough evidence that it would be in bullish continuation to at least test the 2.00 handle.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.