ForexMinute.com – Last 24 in the cryptocurrency market has been average as both Bitcoin and Litecoin dropped by a little margin after a couple of notable selling signals. Altcoins also suffered a setback, as Darkcoin, Dogecoin, Peercoin, and other top cryptocurrency fell 1-2% within the same time span.
There is a possibility of shaky hands selling their investments ahead of the Silk Road Bitcoin auction, fearing an excessive supply that could cause a price drop. A recent study conducted by Citi chief forex strategist Steven Englander also predicts that the bidders would want to buy 50,000 ‘to-be-auctioned’ Bitcoins below the current market value.
The pessimism inside the Bitcoin trading market is prone to be reflected in other cryptocurrency as well, mainly Litecoin whose price movements are found to be identical to that of Bitcoin.
The technical indicators in Bitcoin 4H charts indicates bearish presence, as price is currently below the majority of Simple and Exponential Moving Averages, while the RSI is near 48. Although, due to a limited gap between the upper and the lower Bollinger band, the market is looking to be going through a relatively low volatile period. It means that the trend might shift towards bull even with some little buying signals, as price will cross above the daily moving average.
This overall makes Bitcoin market directionless, despite of what a majority of technical indicators predict. One simply has to wait for the USMS auction to pass, in order to look at the market more clearly.
As for now, the BTC/USD is going downward, but still floating above the 375-support level. A bearish bias is only expected if the price managed to break below the 360-mark, where the next downside risk will be towards 350 – the last month’s low.
In case the price manages to bounce back from 375, it will attempt a rally towards 450 with pullback risks around 400 and 390.
The technical indicators in Litecoin 4H chart indicates a bearish bias, as price is currently trading below every SMA and EMA, while the RSI is near 47. But likewise Bitcoin, LTC/USD is currently advancing in a congestion pattern; therefore, is prone to shift trends even by a little buying signal.
At this point of time, Litecoin is as directionless as Bitcoin. It means it could move either ways provided with a certain sentiment from either side. In case the price picks momentum towards north, it will likely to try to attempt the 3.75 resistance level, sighting 4.15 as the next upside risk.
However, in case LTC/USD dips further below, a bounce back is only expected around the November’s low of 3.40.
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