ForexMinute.com – Last 24 hours in the cryptocurrency market were undoubtedly great, as both Bitcoin and Litecoin managed to fly above their respective key-resistance levels. This near-term bullish correction further incited altcoin traders to maximize their trades, resulting with every top cryptocurrency – Dogecoin, Darkcoin, NXT, and Counterparty – surging massively during the 11/23 trading session.
Though at the same time, we can say that traders are literally using Bitcoin’s uptrend as an excuse to pump the altcoin markets. Dogecoin, for example, has been visibly pumped over the last 24 hours without the occurrence of any major event. It is thus poised to retrace its path downward anytime in the coming hours, or days. One can look at Ripple to get a better example, whose price surged over 18% during the 11/22 trading session, but fell with an equal force during yesterday’s trading hours.
This analysis somewhat fits on Bitcoin as well, though it is still more legitimate than the altcoins. What we intend to say here is the possibility of a pullback once the price hits the 375-mark. Though, there will be attempts to break above this presumed resistance level, but a pullback is poised to appear anytime in the next few days once the price declares its peak. We are thinking it to be 390.
On the 4H BitStamp chart, the BTC/USD opened at 359 during the 11/24 trading session, while continuing the uptrend initiated around the previous key-support level of 350. Over the last 48 hours, the trading volume inside the Bitcoin market has been negligible, though with little inclination towards the buying side. The absence of enough selling sentiment is one of the only reasons why Bitcoin is cautiously trending upward.
As we can see the chart above, the price is currently near the upper Bollinger band, above which lies the overbought region. In the meantime, the RSI is around 60-62 which indicates a moderate buying pressure inside the market. As the volatility increases during the US trading session, we can expect the price to test 385-390 as the next resistance level, while the support line will still be around 350 in case the trend reverses in a hurry.
However, the technical indicators at this point of time are pointing towards strong bullish sentiment. Meanwhile the price is currently above daily moving averages of 5, 10 and 50 days. There the chances of the price moving upward is more likely, until any bearwhale comes and ruins the scenario.
On 4-H BTC-e chart, the LTC/USD opened at 3.55 during the 11/23 trading session, and continued to trend upwards amid the moderate buying pressure and low trading volume. As the price advanced above the daily moving average, the previous bearish outlook began to reduce and RSI settled above 45, indicating a neutral sentiment in the market. In the following hours, some buying signals shot the price above the upper Bollinger band where LTC/USD broke the prevailing resistance level of 3.60.
There is a good chance of Litecoin to continue its rally in upward direction when the US session starts. There the congested pattern will be expanded due to increased volatility and new resistance and support levels will surface. At this point of time, the LTC/USD will be attempting to test 3.90 as its next resistance level, while the support line will continue to stay around 3.45.
To contact the reporter of the story: Yashu Gola at email@example.com