Cryptocurrency Trading News: Bitcoin, Litecoin Testing Bottoms in Bearish Bias

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ForexMinute.com – Last 24 hours in the cryptocurrency market have been typical, as both Bitcoin and Litecoin failed to display any significant price movements, while continuing to tease their respective lows.

BTC/USD 4H BitStamp Chart

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For a very long time, the BTC/USD has been trading below its 200-, 100-, and 50-hours SMAs, while the RSI is stuck around 30-40 area. This indicates the maintenance of the prevailing bearish bias and momentum. There are some rumors that US traders are selling at a loss to offset gains for tax purposes; therefore, the price and its trading volume is likely to remain choppy until we enter 2015.

We can further notice the price forming a head-and-shoulders with 339, a key resistance line which broke a near-term rising speedline towards a downtrend, thus establishing a bearish continuation after crushing a near-term bullish correction attempt.

At this point of time, the price is testing 304 as its next support level, with a downside risk towards October’s low 275. These areas also hold the capability of starting another rally, this time towards the key resistance area around 340. For now, any attempt to cross above the 50-hour SMA around 323 may start another short-term bullish correction. It is the best case scenario for the next few hours by looking at the current conditions.

LTC/USD 4H BTC-e Chart

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The technical aspects of the LTC/USD also indicates the presence of a strong bearish bias in the market, as the price continues to trade below the 200-, 100- and 50-hours SMA, while the RSI is around 40-44 in the last 24 hours. There is hardly any attempts visible to indicate a bullish correction, thus leaving Litecoin in the hands of sellers until the presumed bottoms are tested (around 2.56). In case this support line is broke, the downside risk will be upon the year’s low around 2.21.

Other Cryptocurrency

In the meantime, other cryptocurrencies have also been facing huge selling pressure. In the last 24 hours, Darkcoin, Peercoin, Dogecoin and NXT have dropped around 0.5-1.5%, while the newly launched PayCoin also crashed around 10%.

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com