ForexMinute.com – Last 24 hours in the cryptocurrency market have been satisfactory, as both Bitcoin and Litecoin continue to climb the bullish ladder amid reasonable buying volume. The similar price movement could also be seen among top altcoins, where Darkcoin, Peercoin and NXT ascended comfortably amid a favorable market sentiment. Meanwhile, the Dogecoin price fell extensively over the last 24 hours in an act of ‘dumping’.
Our focus now is on a marvelous report published on Bitcoin news website CoinDesk.com, which predicts Bitcoin to be bullish for a long time. According to the findings of Bitcoin analyst, Mr. Joon La Wang, the decisions of Japanese and Chinese Central Banks to cut off their interest rates might prove to be beneficial for Bitcoin. The report focuses mostly on Chinese Yuan which accounted 76% of the overall Bitcoin trading volume in the last six months. If it gets cheaper due to reduced interest rates, Bitcoin grows in value.
This growth is subsequently for every top cryptocurrency, mainly Litecoin whose price movements are mostly coupled with Bitcoin. Meanwhile, other altcoins are traded mostly on sentimental levels but they sure are to get some booty if Yuan drops in the future.
On BitStamp 4-H chart, the BTC/USD opened at 370 during the 11/24 trading session, after finding the price bottom around the 350 last week. Continuing to the uptrend, the pair moved north in absence of strong selling hands. During this rally, the price stayed above the daily moving average and occasionally went above the upper Bollinger band, indicating a strong buying pressure in the market. In the 16th hour, there were some price corrections that took the BTC/USD down to 377 from 383. The little fall however didn’t stay for long as buying signals influenced yet another rise.
At press time, the BTC/USD is hovering around 392-395, sighting 400 as the next key-resistance level. The price currently is trading a non-corrective bullish channel that can only be reduced around the 400-zone, where a pullback expected. If the price fails to cross above that mark, it will bring market back in the hands of bears, who will try to bring it down to as low as 360. However, if the price manages to break above 400, then it will surely test the early November peak of 453 as the next resistance level.
The current RSI is near 70, and the price is above the 200-, 100- and 50-SMA, indicating strong bullish sentiment in the BTC/USD 4H chart.
On the 4H BTC-e chart, the LTC/USD opened at 3.56 during the 11/4 trading session, after rising from the strong support line of 3.44 last week. It continued to stay on its upward momentum amid a notable buying sentiment. At press time, the price is above the 20-hour SMA but below the 200-, 100- and 50-hour SMAs, while the RSI is near 53. It indicates a neutral sentiment in the market, with inclination towards the bullish channels.
If the price advances north in next few hours, it is likely to attempt to break the 3.90-resistance level. At that point, we can also expect a slowdown in bullish momentum, following which Litecoin may pullback to test the previous support level of 3.45. Only if the price is able to cross above the aforementioned resistance line, it can enter into a long-term bullish channel with an upside risk toward the 4.17 level.
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