ForexMinute.com – Last 24 in the cryptocurrency market have been somewhat poor in terms of trading volume. At one end, we have Bitcoin and Litecoin which is moving sideways in absence of sufficient demand or supply. And at other end, we have altcoins like Dogecoin, NXT and Darkcoin which are being negatively influenced by prolonging neutral sentiment inside the Bitcoin market.
The arrival of this non-volatile sideways movement coincides with the Fed’s announcement of auctioning 30k Bitcoin seized from the Silk Road moderator Ross Ulbricht’s wallet. There is a huge possibility of traders playing cautiously around this one particular movement. Around the previous auctioning event, Bitcoin market displayed some sentimental fluctuations which were subsequently cooled-off as the time went by. It might be possible that traders – both bulls and bears – simply want to hold their investments for obvious reasons.
During the 11/19 trading session, the BTC/USD opened at 378 while continuing to the prevailing sideways movement. The price rallied a little upward in the name of bullish correction, only to be pull-backed after staying on the overbought threshold level of 384-385. The vice-versa happened when the price fell to 373, the oversold threshold level. The only good thing about this price movement was non-volatility, as the BTC/USD moved cautiously throughout the day. The pair closed at 381.
There is also an amusing thing to notice. As one can see the above chart, there is a specific pattern which displays few buying signals, followed by a huge selling one. This indicates a little bit of manipulation, isn’t it?
At the time of writing, a notable sell-off has pushed the BTC/USD inside the oversold region, followed by some price correction attempts. We expect market to stay in a similar way for the November 20th trading session. The neutral sentiment in the market gives both bulls and bears an equal hand. So in case the price moves downwards, it is likely to find a string support level around 365-370. And if it moves up, a similarly strong resistance area is waiting at 384-390.
Any attempt to break below the support level will open a long-term bearish channel, where the price might test the next support around 340-350. However with any pressure from the buying side, the BTC/USD might once again want to test 400 as the next resistance level, while on its way upward. If it breaks above it, we are seeing a long-term bullish bias where the price is expected to pullback only from the psychological resistance level of 450.
The Litecoin traders, likewise Bitcoin, is also holding their investments it seems. During the 11/19 trading session, the LTC/USD opened at 3.75 while consolidating sideways from the prevailing neutral sentiment. Small buying signals took the price north, where it tested 3.80 as the temporary resistance level. Its pulled-back almost instantly and did a vice-versa near the oversold threshold at the support around 3.71. The LTC/USD closed eventually at 3.74 at the end of the day.
The congestion pattern can only be broke with some wild buying or selling spree. In case the former takes place, the LTC/USD might try 3.85-390 as the key resistance level. In case of downward movement, the pressure would be on the 3.69 area to hold the price. If it goes below the aforementioned support level, then the LTC/USD might test 3.50-3.60 as the next support level.
To contact the reporter of the story: Yashu Gola at firstname.lastname@example.org