ForexMinute.com – Cryptocurrency market seems to be in a better shape if one considers the last 24 hours. Almost every altcoin, including Litecoin, Darkcoin, Dogecoin, etc. have responded to the Bitcoin near-term bullish corrections during the 11/4 trading session. Meanwhile, BitSharesX seems to be heavily pumped within the same time frame, as its market cap has surged from around $31.5 million to the current $36.5 million.
Our focus will however be on the locomotive of this entire cryptocurrency train, Bitcoin. As the market entered November after retreating from the mid-October high of 415, there was a notable bearish bias that took the price to certain lower lows and lower highs. After finding a solid floor around 316, the Bitcoin market attempted to reverse trends, but managed to do just for a short time. During the 11/3 trading session, the Bitcoin price rallied in a sideways consolidation (between 322-328 level). This ultimately reflected the fading impression of bears inside the market. This continued over the last 24 hours as well, where Bitcoin started to move upward amidst good buying volume and occasional overbought levels.
Once could credit Friday’s NFP for this possibly “short-term” bullish trend. Most of the investors believe in holding their investments around the release of the NFP report, which might either weaken or strengthen the US Dollar. The QE closure recently had added muscles to the USD, which had a little but notable effect on the Bitcoin market. The current consolidation proves that the Bitcoin investors are playing safe this time, hence the absence of bearish signals until Friday.
Even if there is a weak NFP report, Bitcoin prices are far from achieving a long-term bullish correction. Yes, it might consolidate but the NFP alone cannot be a reason to inspire an uptrend. The possibility of yet another downtrend is thus likely to happen, barring other kinds of sentimental reasons. But again, anything can happen inside the Bitcoin market thanks to the famous volatility.
The BTC/USD opened at 326 during the 11/4 trading session, very close to the oversold position in narrow Bollinger bands. The pair picked momentum in the next hours, as it started to trend upwards after finding support at 322.48. It retraced back a bit after peaking at 328.89, but was one again supported at a new level of 325. The BTC/USD closed inside an oversold position of 336, while indicating the fading impacts of earlier prevailing bears.
The uptrend is continuing even in today’s trading session. At press time, the BTC/USD is valued at 339.68 on BitStamp. The technical indicators are suggesting a strong buying sentiment. If the sentiment prevails, then we are hoping the BTC/USD to cross the 340 level. This figure might also act like the support for the next upward rally. In case the bearish sentiment returns after the NFP report, the 340ish support level might turn into a resistance one, sighting 316-320 as a bottom.
To contact the reporter of the story: Yashu Gola at firstname.lastname@example.org