ForexMinute.com – Last 24 hours in the cryptocurrency market were somewhat better than what we encountered last week, at least in terms of Bitcoin and Litecoin. The current period of consolidation hints a nearly equal demand and supply. Even when the market currently is in this month’s most calm state, there is still a huge chance that it might continue to its previous bearish rally.
There are indeed strong support and resistance levels that are holding the Bitcoin and Litecoin market at bay. This sentiment could be a result of the recent government interventions in the cryptocurrency businesses. At first, it is FinCEN which has brought digital currency exchanges and payment processors under the category of ‘money services businesses’. On the other hand, SEC has sent inquiry letters to a few hundred Bitcoin companies regarding their unregistered securities offering.
Volatility around such events can only be seen if they are either too negative, or too positive. FinCEN and SEC rulings, on the other hand, are more concentrated on eradicating bad actors from the cryptocurrency market. A mix sentiment is thus clouding over the community, in which one believes these regulations are necessary, and others believe that they are simply demoralizing the essence of digital currencies.
And it is not just Bitcoin and Litecoin that seems to have been changing price movements in response to these events; altcoins like Darkcoin, Namecoin, Peercoin, Dogecoin and NXT are also trading in a stiff range over the last 24 hours.
During the 10/28 trading hours, the BTC/USD opened at 349.05 amidst neutral sentiment. It continued on its sideways price rally for the first few hours. Around 0645 UTC, the trend shifted a little upwards when price reached to the day’s peak at 354.69, with its support at 350. Bullish sentiment was expected at this point, but was once again retreated by the equally pressuring bearish signal, taking market back to its narrow trading range. A little sell-off once again brought the BTC/USD to 349-351 level. The pair closed at 351.51 at the end of the day.
At present, we are seeing some attempts to bring the market into its previous bearish mode. There was a sell-off noted between 0200 and 0300 UTC hours today, where the BTC/USD fell from 350 to around 346. It although was supported by the presence of bulls, and was retraced back inside the comfortable sideways zone. At press time, it is priced at 350-351 level, almost 0.20% down than its price 24 hours back.
In case the consolidation trends breaks and market moves upwards, we are hoping the price to cut through the 360-mark. Any break above 370 means the BTC/USD will try to cross 400 in next few days. In case the previous bearish signals return, the pair might find a strong support at 340. Any attempt to break below this mark will take Bitcoin to 300-325 level.
To contact the reporter of the story: Yashu Gola at email@example.com