Cryptocurrency News: Shorting Keeps Bitcoin at Bay; Litecoin Now Stable

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ForexMinute.com – Last 24 hours in the cryptocurrency market were a little satisfactory as altcoins improved upon their previous bearish scenarios. These are Litecoin, Ripple, and BitSharesX.
On the other hand, the Bitcoin market once again went through too much shorting at multiple exchanges, especially BitFinex where one individual shorted a large amount of BTC, which brought the overall market cap down to about 0.5%. This further created a selling frenzy among small fishes.

The one trouble which the Bitcoin market is going through is absence of orders. There is indeed a visible attempt to deliberately bring down the BTC prices, making the entire mood bearish. We must also notice that the shorted Bitcoins are nothing but swaps, creating two possible scenarios – a massive downfall or a gigantic uplift.

A conspiracy theory meanwhile is also hitting the wires, saying BitLicense to be the cause of the current bearish continuations in the market. The commenting period on NYDFS-proposed Bitcoin regulation was recently closed, which coincided with the downfall in the Bitcoin market. As the final draft of the law is yet to be announced, bull traders might be holding on to their investments to trade according to the future price movements. And not just Bitcoin, almost each and every top cryptocurrency is counting hugely on BitLicense.

Here is the trading report:

BTC/USD
During the 10/26 trading sessions, the BTC/USD opened at 346 amidst moderate selling pressure, which brought down the price to the 342-343 level around 0200 UTC. The same level acted as a support to yet another short-term uptrend, in which the BTC/USD touched 349 and consolidated for a while. It once again rose a little further and was finally resisted at 354-356 level. After consolidating there for a while, the bullish presence disappeared and the price once again fell downward. The stages – uptrend, consolidating, downtrend, consolidation – repeated once more by the end of the 10/26 trading session. The BTC/USD closed at 351.

This price movement proved that the next wall bears are trying to break is 340, while a strong resistance is present around the 355-360 level. In case the bearish movements continue and break the 340-mark, we are seeing the price level to be dropped to the 290-300 level. In case long-term bullish corrections appear, we are thinking the BTC/USD to try the 390-420 level in a few weeks.

The currency indicators are suggesting strong selling signals on daily charts. On hourly charts, they are recommending to buy.

As press time, the pair is being traded at 352 and has surged around 0.30% in the last 24 hours.

LTC/USD
During the 10/26 trading session, the LTC/USD opened at 3.66 amidst neutral market sentiment. It stayed stable for considerably long hours – indicating an equivalent demand-supply scenario – but began to move upward somewhere around 1130 UTC, the same time when BTC/USD also shot upward. The LTC/USD was resisted at the 3.71-3.73 level and closed at 3.73 by the end of the 10/26 session.

Seeing today, the Litecoin is showing some really great bullish corrections, testing the next peak at 3.84. It is currently now in consolidation and is priced at 3.81. There is however a chance that the price might switch to the bearish mode once hitting the 3.85 mark. Any attempt to cross that figure will take Litecoin into a long bullish area, where it can try the 3.85-4.00 level. In case the price reverses from the 3.80-3.85 range, we are seeing a drop to the 4.20-4.23 level.

Daily chart indicators are hinting strong buying sentiment.

At press time, the LTC/USD is 3.81 and has risen over 2% in the last 24 hours.

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com