ForexMinute.com – After sleeping through Sunday, the trading volume picked up a little at the start of another week in the cryptocurrency market. Both Bitcoin and Litecoin stayed intact on their respective support levels and preferred to trade sideways in the absence of any major bullish and bearish attempts.
As for the other coins, they continued to be a safe haven for short-term profiteers. Almost each one of them rose impressively over the last 24 hours, with Darkcoin & NXT jumping over 2%, and Dogecoin and Peercoin around 1%. The maximum surge however belonged to Counterparty, which rose around 9% over the last 24 hours.
In the meantime, cryptocurrencies continued to be the target of new government rulings, the latest one being from Australia where regulators introduced a new rule in which welfare applicants will be required to declare their Bitcoin assets. It is though not clear how this is going to cut slack from someone’s pension, but it surely seems that there will be some consideration like this in the future.
The BTC/USD opened at 377 during the 11/16 trading session, after finding a strong support level at 369 the previous day. There were some bullish attempts to provoke the price upwards in initial hours, but the presence of an equally strong bearish sentiment kept the price near the moving average. After trading sideways for the entire day, the BTC/USD encountered some buying interest only in the end when the price picked momentum and closed in an overbought territory, at around 399.
During today’s trading session, the price continued to stay above the near term moving averages on hourly charts, indicating two scenarios. Either there can be a strong upward momentum in the next few hours if the market experiences strong buying from the bulls’ side; or there can be a major decline as the 400-mark may act as a psychological resistance level. The market then has to rely on its previous strong support level of 369-370. If the price crosses below this support, it will open a long-term bearish channel for BTC/USD, this time targeting the previous month’s support of 318-320.
If the first scenario fits, then the price might rise once again above the 400-mark to test 453 as the next resistance level.
To contact the reporter of the story: Yashu Gola at firstname.lastname@example.org