ForexMinute.com – Last 24 hours in the cryptocurrency market have been pretty bad as Bitcoin continued to stay in congestion pattern, which further incited a selling pressure and took price in an oversold territory. Conversely, Litecoin broke above the cluster of moving averages over the weekend and further established a bullish scenario for itself.
It was indeed the uneasiness in Bitcoin market that benefitted Litecoin the most. The weakening volumes in the Bitcoin market clearly indicated the absence of traders while, on the other hand, Litecoin took all the attention for being the silver-to-Bitcoin’s-gold.
Speaking of other cryptocurrencies, they all seemed to be under the influence of Bitcoin, trending either sideways or downward in over the last 24 hours. The ones that have faced the maximum fall are Darkcoin, Peercoin, Dogecoin and NXT. MaidSafeCoin, which we accused of being pumped inyesterday’s analysis, also fell by 9% in over the last 24 hours.
By looking at the current technical readings on 4H BitStamp, we can see that BTC/USD is finally facing the pressure from sellers’ end after being trending sideways for too long. Even then, the price is currently hanging above the psychological support level of 365 – a point where a bounce back is expected as well to test 385-390 area as the next resistance level.
The price is currently below the 100-, 50-, 20-hours SMA and while the RSI is around 38. This overall indicates a strong bullish presence in the market. However, considering the congestion pattern in which the BTC/USD is currently trending, even a moderate buying signal could inspire an uptrend (for short term at least).
So at this point of time, traders should watch out for the 365-support level. If the price manages to break below this line, there would be huge pressure on 350 to hold the prevailing bearish momentum. Failing to do so will take the price to a long-term bearish bias, where the next downside risk will be towards 320.
In case the bullish scenario reappears after a strong bounce back from any of the aforesaid support levels, price would want to test 385-390 as the next resistance level, with an upside risk towards 400-405 area. Above that, a pullback can only be expected around the 450-455 area.
Against the Bitcoin price movements, the LTC/USD is seeking to establish a bullish breakout. By looking at the current technical readings on 4H BTC-e, we can see the price is currently above the 100-, 50-, and 20-hours SMA, while the RSI is around 58. This indicates a near-term bullish sentiment in the market.
Even though, we should not ignore the selling pressure Litecoin could face while being at peak. In case the market decided to follow-up Bitcoin once again, there is a huge chance it will fall below the leading SMAs in a couple of hours. In this case, traders should watch 3.65 as the next key support level, below which lies a near-term bearish bias, with a bounce back expected around the 3.45-3.48 area.
A bullish breakout can only be expected if the price manages to break above the 3.70-resistance level, where the next pullback risk will be towards 4.00.
To contact the reporter of the story: Yashu Gola at email@example.com