ForexMinute.com – Last 24 hours in the cryptocurrency market have been the worst this month, as both Bitcoin and Litecoin broke below their respective key support levels, and established a bearish bias in the 4H timeframe.
Meanwhile, altcoins too suffered because of the pessimistic price movements in the Bitcoin and Litecoin market. Almost each top cryptocurrency fell notably in the last 24 hours, which includes Darkcoin (-3%), Dogecoin (-4%) and NXT (-10%).
There are two different possibilities behind today’s awful fall. Either, it might be possible that the auctioned Bitcoin chunk have been dumped for fiat money. Or, the overlong sideways pattern might have incited uneasiness in the market, following which traders began to sell-off their holdings only to buy them back at the bottom. Much will be explained in our technical readings below:
The technical readings on 4H BitStamp chart displays price to be below 200-, 100-, 50-hours SMA, while RSI is also around 26. It indicates a strong bullish scenario in the market. The BTC/USD is currently tagged around the 352-354 area, attempting a bounce back. In November, we noticed a 350-wall inciting a long-term bullish scenario which subsequently was stopped around 390. We can expect the same to happen this time if the price manages to break above the 365-resistance level. In that case, the next upside risk will be towards the 385-390 area.
However at this point of time, the chances of a downfall is equally possible thanks to the strong selling pressure inside the market. The price is currently testing 350-351 as its next key support area. Any successful attempt to break below this line will open a long-term bearish bias for Bitcoin, with the next downside risk towards 320.
Mirroring Bitcoin’s price movements, the LTC/USD is also trending below every Simple Moving Average, while the RSI is around 35. It also indicated strong bearish pressure in the market. In this case, the price would want to hold itself above the 3.40 support to establish the chances of a bounce back towards the3.60-resistance line. In case the excessive buying signals bring the LTC/USD below the aforementioned support level, the downside risk will be once again on August’s low of 3.33.
To contact the reporter of the story: Yashu Gola at firstname.lastname@example.org