ForexMinute.com – Cryptocurrency market made a sharp recovery soon after the Microsoft’s announcement of accepting Bitcoin for its digital products in the US. Bitcoin formed a bullish flag after staying inside the bearish zone for days; while each and every other top cryptocurrency, such as Litecoin, Darkcoin, NXT and Dogecoin, retreated from their prevailing downward movements as well.
Even though the Microsoft hype is great, it is still for short-term, indicates the chart above. As you can see, there is a very strong resistance around 363-365 area, which has just incited a pullback towards the current support level of 348-352. Based on current technical readings of 4H BitStamp chart, the BTC/USD is currently trading below 200-, 100-, 50-hours SMA, while the RSI is near 40. At the same time, the price is above 10- and 20-hour SMA.
It overall indicates the market to be bearish, expecting a bounce back from the aforementioned support level. In case it happens, 365-370 will hold the price from forming a rally towards the next key resistance in 385-390 area.
However, if the price manages break below 345, there will be huge pressure on 340 to keep the market from entering a long-term bearish bias. In case this level is broken, the price will test the November lows near 320 as the next support level, with downside risk towards 300.
Based on the current technical reading of 4H BTC-e charts, the LTC/USD is currently trading below the 200-, 100- and 50-hours SMA, while the RSI is around 38. It indicates strong bearish sentiment in the market amidst relatively high volatility. The bearish continuations could be possible only if the price manages to break below 3.40, while sighting 3.33 as the downside risk.
In case the price manages to climb upwards, it would want to break above the 3.50-resistance level, at least to reduce the market’s bearish sentiment. A strong bullish bias will only come into view if price manages to cross above the 3.70 line, with upside risk towards 4.17 November high.
To contact the reporter of the story: Yashu Gola at firstname.lastname@example.org