ForexMinute.com – On a relatively low volume day, the cryptocurrency market is riding high on bulls if one sees the current Bitcoin and Litecoin charts. However, the longevity of this fresh buying frenzy is not yet confirmed. Here have a look:
BTC/USD 4H BitFinex Chart
After falling around 40% since New Year, Bitcoin is still trending in a bearish bias. Though at the same time, there are some notable attempts from the bulls’ end to shoot the price towards prevailing resistance levels. Inthe last few hours, the BTC/USD moved upward after trending sideways for most of the weekend. The surprising price movements has indeed changed the near-term dynamics by putting the next resistance around 230 in sight.
The technical indicators have also been changed after the arrival of two bright green candles. MACD has moved above the signal line; value is nearing overbought region; RSI is in buying territory around 53 – all factors that are indicating towards a near-term bullish run.
At the same time, let’s not rule the possibilities of a pullback around 230, which is likely to influence Bitcoin towards trending either sideways or in a downward direction. In case it happens, the pressure would be the 172-support level to keep the price away from attempting a bearish breakout. But in case the BTC/USD manages to push above the 230-mark, there will at least be a reduced bearish bias that will remain until the price manages to break the next pullback points around 275 and 300. The upside risk will meanwhile remain towards 320.
LTC/USD 4H BTC-e Chart
The green candles have also appeared in the Litecoin-USD charts, thus indicating a near-term recovery signal likewise Bitcoin. Litecoin’s future movements can thus be figured out only by looking at Bitcoin’s trend. There are however little twisted technical dynamics in LTC/USD 4H charts. The RSI is below 50, the volatility is limited, while the MACD is only slightly apart from its signal line. The upward movement in the next few hours is likely, but for how long can’t say.
For now, it seems Litecoin will be testing 1.60 as its next resistance level, and will put pressure on the 1.85-2.00 level. Speaking of south, the support around 1.07 still holds strong and any downward movement is likely to face strong buying pressure around this point.
The cryptocurrency market is looking optimistic for now, with each altcoin displaying impressive surges in the last 24 hours. Some among them are Dogecoin, Peercoin and NXT – each having a 6-8% jump. On the other hand, Darkcoin has rocketed 10% within the same span. PayCoin however has dropped 15% thanks to its own melodramatic life.