ForexMinute.com – Last 24 hours in the cryptocurrency market have been pretty average. Read further to know why.
Bitcoin rallied very sharply from $343 to $361 when the news of Microsoft broke out. On its way upwards, the bullish correction clutched a lot of shorters. However, the Microsoft hype began to fade on the top, in the wake of bearish hands attempting a takeover. The market is now once again back within a moderate selling area, indicating a wider bear market ahead in case the downtrend prevails.
At this point of time, the BTC/USD on 4H BitStamp chart is below the 200-, 100- and 50-hours simple moving average, while the RSI is around 45. This overall indicates market to be in a near-term bearish phase, sighting this month’s low of 342 as the next support level. Any attempt to break below this level will open up a strong bearish outlook where the next bounce back will be expected at the October’s low of 320.
On the other hand, the bullish signs will remain in the picture if the price manages to hold above 355. The 350-355 area has proved itself a strong support level in the last two months. There is a greater chance of a stronger rally if the price manages to go above the 363-365 resistance area. In this case, the next upside risk will fall towards the 385-390 area.
Litecoin, Bitcoin’s closest cryptocurrency, stayed hypnotized with the latter’s price movements. The market has returned to a strong selling area after rallying a little the previous day. The volatility meanwhile is decreasing with the time, indicating LTC/USD to trend in a neutral zone in case congestion reappears.
Based on current technical analysis however, the LTC/USD on 4H BTC-e charts is below the 200-, 100- and 50-hours SMA, while the RSI is nearly 40. This jointly indicates the presence of strong bearish sentiment in the market, reducing the chances of any possible rally at this point of time. The LTC/USD, currently priced around 3.41, is testing a bounce back from the downside risk of 3.33.
In case of bullish comebacks, the price would want to trend upwards for the near-term. In this case, the next-in-sight resistance line will fall around 3.50. Any successful attempt to break above it will put pressure on 3.70 to keep the price away from falling into a breakout zone.
In the last 24 hours, Dogecoin and Peercoin fell by 1-3%, while NXT and Darkcoin surged by 2-3%. We keep releasing the detailed overviews of the altcoin markets. Please refer to them to know more.
To contact the reporter of the story: Yashu Gola at firstname.lastname@example.org