ForexMinute.com – Last 24 hours in the cryptocurrency market have been quite average, as both Bitcoin and Litecoin continued to consolidate sideways in a bearish territory.
After rallying sharply from $343 to $361 after Microsoft’s announcement, the BTC/USD quickly fell down thanks to the shaky hands trying to take out a quick buck from the market. The pair yet managed to stay above the oversold region, through inside the bearish territory in absence of strong bullish presence. The price remained there throughout the weekend, consolidating sideways amid low trading volume.
At press time on 4H BitStamp chart, the Bitcoin price is below the 200, 100 and 50-hours SMA, while RSI is near 48. It overall indicates a near-term bearish bias in the market. There the next key support level lays around 340 which, if broken to the downside, could inspire a bearish flag. In this case, the pressure would be on October’s bottom of 320 to hold the price from falling into a bearish breakout, where the next low is around 275.
However, if the price manages to stall above the 350-mark, the possibility of a bullish divergence will still be there, just like the last month. Here a medium term bullish bias will only be expected if the price manages to cross above the 363-365 resistance level.
Based on the current technical indicators on 4H BTC-e, the LTC/USD currently lies below the 200-, 100- and 50-hours SMA, while the RSI is near 45. It overall indicates a strong bearish bias in the market. But at the same time, the market currently is in a congestion mode, indicating the lack of enough volatility. This means that even a little buying/selling pressure could move the market either way. Though like every time, traders will have to read Bitcoin indicators to predict the future Litecoin movements.
As for now, the LTC/USD is testing 3.38 as the next support level. In case the price falls below this mark, the next downside risk will be towards 3.33. However, a bounce back around this level could ensure a near-term bullish correction in the market, with 3.50 as the next resistance level. There the upside risk will be towards 3.70.
In last 24 hours, Dogecoin and NXT have dropped by 2-3%, while Darkcoin and Peercoin around 1%.
To contact the reporter of the story: Yashu Gola at firstname.lastname@example.org