ForexMinute.com – Last 24 hours in the cryptocurrency market were as bad as the previous ones. Look further to know why.
Bitcoin market is entering into its worst phase since the early November. The price has already broken below its key support level around 340, and is now putting pressure on 320 to hold the price from falling into a bearish breakout. As you can see the 4H BitStamp chart above, the selling pressure has been monumental in last few hours, and the market has formed a bearish flag. In the meantime, the price continues to stay in an oversold territory, without the hint of any bullish correction. This is disaster!
In the meantime, we cannot rule out the possibilities of a possible bounce back from the bottom which, at this point of time, seems to be located around 300-310. There the price could be reversed to start another rally, but still it is unlikely to go beyond 340, which is looking like a stronger resistance level for now.
The price is currently below each and every SMA and EMA, while the RSI is near 18, indicating an oversold area. Bitcoin needs a bull-whale!
Still a little better than Bitcoin, the LTC/USD is trending downwards amid a strong selling pressure. The price is currently below the 200-, 100- and 50-hours SMA, while the RSI is around 30 on 4H BTC-e charts. It overall indicates a possible bearish breakout in next few hours, with 2.75 being the only hope to hold the price to start another rally.
In case bulls find the bottom as an opportunity to buy back into the market, we could expect LTC/USD to test 3.02 as the next resistance level, though the market will still find it difficult to escape from the bearish bias it is in. In case they don’t, the next downside risk will be towards 2.02.
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