ForexMinute.com – Last 24 hours in the cryptocurrency market saw both Bitcoin and Litecoin attempting to break their respective support/resistance levels, thus moving sideways until a proper bias comes into view. On the other hand, altcoins are having a poor show as Darkcoin, Peercoin and Darkcoin have fallen 1-3% in over the last few hours.
We earlier predicted the market’s drowsiness to be a result of the Silk Road Bitcoin Auction. Right hours before the auction, a seller dumped around 716 Bitcoins on BitStamp, which brought the price to the oversold territory (see the BTC/USD chart below). And as the auction came to its closure, the price is back being neutral between 365-385 areas, while attempting a near-term bullish correction. Here’s our analysis:
The technical readings of the BTC/USD BitStamp 4H chart indicates price to be marginally below the 100-, 50- and 20-hours SMA, while the RSI is somewhere near 46. It indicated a bearish bias in the market, which capable enough move the market towards south in the next few hours. There is however a strong support level around 365, which might play an active barrier to reverse the downtrend. In case the price manages to break below the 365-support point, the next reversal is expected to be around November’s bottom of 350, with downside risk towards 320.
In case the price managed to reverse from 365, the next resistance-in-sight will be around 385-390, with a pullback risk towards 400-405 area.
The technical readings at the BTC-e LTC/USD 4H chart indicates price to below the 200- 100-, and 50-hours SMA, while the RSI is near 44. It overall indicates price to be in a bearish bias, which might incite the selling pressure in the market. At the same time, we can see price to be trending in a low volatile range. Thus, it only needs a one notable buying signal to reverse the current trend and bring market back in the hands of bulls.
Such a reversal is expected around the support level of 3.48, where a strong buying pressure lies. However, in case the bearish scenario prevails further, price might try breaking this support to test a bounce back from 3.40. In case it fall below 3.40, the ultimate downside risk will be towards the August’s low of 3.33.
In case the price bounces back from 3.48, the pressure would be on the 3.85-.395 area to hold the price below the long term bullish bias.
To contact the reporter of the story: Yashu Gola at email@example.com