Crytocurrencies bitcoin and litecoin surged today. Last year around this time, these two virtual currencies also exploded upwards. This year, after steep corrections in both, bitcoin and litecoin are looking bullish again.
Surging from a Double Bottom: Bitcoin found support at 318 last week, above its October and 2014 low around 285. After a double bottom, the market started to how bullish signs. Today, it surged above 400, and is around 420 by the end of the 11/12 global session.
Turning Bullish: Note the price is above the cluster of 200-, 100-, and 50-period simple moving average (SMA). These are signs that the market has turned bullish this week. At this point, if there is a pullback, we can expect buyers around 375, and also 360. Here price would be just above the cluster of SMAs, a support/resistance pivot, and a rising speedline from last week. A break below 360 would keep the mode neutral instead of bullish.
Next Target: In the bullish scenario, the upside risk in the short-term is towards a resistance pivot near 450.
Consolidation, Triple Bottom: Looking at litecoin, we can see that price was also consolidating since last week. It was flatter, but did form a triple bottom above 3.50 by the start of this week. Then, we saw a breakout followed by a pullback to test this price bottom.
Today’s price action confirmed the triple bottom, as litecoin price surged above the moving averages, and pushed the 4H RSI to 80, showing a shift to bullish bias and momentum.
Price broke above 4.00, and is settling around 4.15 at the end of the 11/12 global session. If it pulls back, we can expect buyers at the 3.75 level, which was a previous resistance pivot, as well as where the 200-period SMA resides. It might also be reinforced by a rising trendline from last week.
A break below 3.70 might shelve the bullish outlook, otherwise, the bullish outlook has upside risk toward 4.20 then 4.52 resistance pivots.
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