ForexMinute.com – Last 24 hours in the cryptocurrency market were the worst by every mean, as both Bitcoin and Litecoin broke below their respective bottoms and formed a rather stretchy bearish flag. Look further to know more.
BTC/USD 4H BitFinex Chart
It was only a matter of one night when BTC/USD made a plunge after floating above the 300-support for a long time. And the worst part of the entire fall turn out to be the absence of one particular bottom, especially when price breached below 300, as well as October’s low around 275. For now, one could hardly expect a strong bounce back as price remains to hang in a dangerous bearish bias.
The price is currently trading around $40 below the next simple moving average, while the RSI is around 14. This overall indicates a very strong bearish bias and continuation, thanks to the persisting market sells. In an ideal scenario, these selling signals have to find a bottom around a psychological support level around 250. Indeed, it is just a speculation for argument sake. But nonetheless, we can expect the arrival of buyers once a particular level is being presumed as bottom. If such a thing happens, the price might at least rally towards the nearby resistance around 275. Only a break above this point will establish a near-term bullish correction.
If price continues to fall towards an invisible bottom, we are expecting it to test lower 200’s as its next support level.
LTC/USD 4H BTC-e Chart
Litecoin is of course tailing Bitcoin towards the same unknown bottoms. The LTC/USD has already breached below the October’s low around 2.11 and is now being valued around 1.99. The price is visibly below each and every SMA and EMA, while the RSI is way too into the oversold region – around 9 at press time. This overall indicates a very strong bearish bias as well.
At this point of time, the price might want to test September 2013’s bottom around 1.31 as its next support level. Though, the bearish continuations will make it hard for the market to attempt a long-term price rally. Even though, we can expect the arrival of buyers who want to enter the market at low, at least to make short-term profits. In this case, price might attempt a bounce back towards the next resistance level around 2.12. It will though remain in a bearish bias until it breaks above the 2.65 resistance line.
The other cryptocurrency are facing the bearish wrath of Bitcoin, as almost each one of them has fallen by double figures in last 24 hours. They are NXT (-12%), Darkcoin (-10%), Peercoin (-5%) and Dogecoin (-10%). PayCoin, on the other hand, has risen by 40% within the same time span. However, the source behind such a massive surge is still shady.