Cryptocurrency Trading News: Selling Pressure Clouding over Bitcoin, Litecoin Market

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ForexMinute.com – As the NFP release just a day ago, cryptocurrency market seems to be in a position to hold breathe and watch the outcome. Over the last 24 hours, both Bitcoin and Litecoin markets showed reasonable buying pressure but fell just short of hitting their respective resistance zones, thus neutralizing the enter scenario. It however indicated the presence of bears in the market, which might come into impact If the coming NFP report strengthen the USD.

In the meantime, altcoins continue to react on Bitcoin’s price rally, except BitSharesX that fell miserably in a well-planned pump-dump practice. Other than that, almost every other cryptocurrency sailed smoothly and rose by considerable dollars over the last 24 hours. The key ones include Dogecoin (+3.5%), NXT (+1.5%) and Darkcoin (+2.5%).

BTC/USD 1-H Trading Chart

CTN2.1

The BTC/USD opened at 336.40, continuing the upwards rally formed near the 318-320 support area during the 11/2 trading session. Some small selling in early hours provide slipperiness to the market, and the pair fell to around 331. However, buying volume at this point came as a great help to continue the uptrend. As you notice the chart, the RSI remained above 60 until the 20th UTC hour, indicating moderate buying sentiment. It however fell below the bullish level ahead of the close due to low volumes and short selling. The BTC/USD eventually closed the 11/5 session at 337.27.

We are hoping the price to consolidate in a sideways trend, with little movement towards north. In this case, there is a huge chance of it falling below the 330-level, citing 345 as its resistance level. In case the price breaks above the 345-mark, we can expect a long-term bullish correction with 370-385 resistance level in sight. Any shorting attempts in current stage would meanwhile do a complete reverse. There the BTC/USD might try 318 as its next support level, with a strict stop loss around 335. Any attempt to cross the support will bring the 275-300 bottom level in sight.

LTC/USD 1-H Trading Chart

CTN2.2

The LTC/USD opened at 3.61 and consolidated sideways amid a nominal selling-buying pressure. Its RSI remained well between the 50-60 levels, indicating a neutral sentiment in the market. As you can notice the above chart, the pair once broken the overbought threshold, hitting the 3.65 peak in the 17th hour of 11/5 trading sessions. There the trend reversed a bit and LTC/USD began to rally downwards. It closed ultimately at 3.61 at the end of the day.

With RSI below 50, the pair is once again into the strong selling zone. Other technical indicators are also indicating the same outcome. In case bearish sentiment dominates, the LTC/USD might test the previous support level of 3.50-3.52. Any attempt to break below it will take the price in vulnerable selling area, where the value is expected to be in 3.00-3.25 area.

In case if the bullish corrections appear, even for near-term, then the LTC/USD might try 3.75-3.80 as the next resistance level. The chances of it happening however looks suspicious at this point of time.

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