ForexMinute.com – Last 24 hours in the cryptocurrency market have been strictly average, as both Bitcoin and Litecoin are continuing to trend sideways in a congestion pattern. A majority of top altcoins are also quiet due to low trading volumes, with Darkcoin, Dogecoin and NXT staying neutral. On the other hand, MaidSafeCoin has seen a sharp surge in over the last 24 hours – around 32% at press time.
The market is expecting to break the congestion pattern once the Feds gets done with the auction of 30k Bitcoin. It is indeed possible that traders are simply holding on to their investments, only to see the outcome of the aforementioned event. A clear picture would surface only when the psychological pressure around the auction fades away.
On BitStamp 4H Chart, the BTC/USD is currently trending sideways below the daily moving average. Meanwhile, the price is also below the majority of Simple and Exponential Moving Averages, and RSI is near 48. This technical behavior somewhat suggests a bullish sentiment in the market but, at the same time, seems to be contradicting with a thin gap between upper and lower Bollinger bands. In simple words, price is prone to jump from being bearish to bullish, or vice versa, even by a little selling/buying order; thus, making market directionless.
At press time, the price is hopeful to stay quiet while being held between 365 and 385. A bullish bias can be expected only if the BTC/USD breaks above 385-390. There the next resistance level will be around the 400-405 area, which is also a strong selling zone. In case the price breaks below the 365 support line, the next downside risk will be towards 350. This zone will also open up buying opportunities to stay another rally.
On BTC-e 4H Chart, the LTC/USD is trending sideways in a congestion pattern. The price is currently below every SMA and EMA line, while the RSI is around 48. The market looks like a replicated version of Bitcoin, i.e. directionless. It simply means that the price could move either ways, depending on the selling/buying order it receives in the next 24 hours. A breakout in either direction will provide a clear picture. But at this point of time, we are describing every possible movement.
In case the price pushes above the 3.60 resistance level, it will enter into a bullish bias, sighting 3.85-3.95 as the next resistance area. This position would also increase probability of a pullback. In case the price manages to cross above, the next upside risk will shift towards 4.17 – the November’s peak.
However, if the price falls below the lower Bollinger band, i.e. 3.50 the pressure would be on 3.40 to hold a long-term bearish bias. In case price breaks below this level, the downside risk will be towards 3.33 – the August low.
To contact the reporter of the story: Yashu Gola at email@example.com