ForexMinute.com — Last 24 hours in the cryptocurrency market have been strictly okay, as both Bitcoin and Litecoin continued to trend in a suspiciously bearish scenario.
BTC/USD 4H BitFinex Chart
Bitcoin hasn’t reacted much to the recent BitLicense news – a soon-to-be-launched New York cryptocurrency regulation law that recently was amended to be more business friendly. As a result, what we see at press time is the same old sideways movement in absence of enough trading volume.
While it has been cleared that market is no mood to take granted of hypes, we see Bitcoin going lower and lower in upcoming hours. Reasons are purely technical. As you can see the 4H Bitfinex chart above, the BTC/USD is clearly trading below its key SMAs (50, 100 and 200-hours), while the RSI is near 45 – clearly a bearish area. You could also notice three very small red candles in last 12 hours, which is slowly taking Bitcoin towards oversold region (near 218).
If the price ever crosses below 218, it will either attempt a correction — probably to retest 230-resistance — or it will simply extend the prevailing downtrend, only to find itself testing 200 as its next support. The downside risk, at this whole time, will meanwhile remain on 165 – this year’s bottom separating price from falling into a breakout towards lower 100s.
At the same time, the maintenance of bullish momentum will be likely if RSI manages to float above 45. A correction swing will appear only if price manages to cross above the strong resistance point around 250-260 area.
LTC/USD 4H BTC-e Chart
The Litecoin price movement, like always, seems to be in coherence with Bitcoin. At press time, the LTC/USD is trending sideways quite cautiously while the Bollinger bands are contacting with each other. Previous price movement suggest that congestion patterns normally end up in a breakout towards south, possibly due to absence of enough buying trades. In case of Litecoin, the price is also facing such a scenario if market continues to trade in a stiff trading range. Nevertheless, much of Litecoin’s own movability depends on Bitcoin, which is itself looking bearish as this point of time.
In case LTC/USD drops, it is likely to face a strong support around 1.55, with a downside risk towards 1.00. In the meantime, the price is hopeful to sustain its bullish momentum if it crossed above the 1.8-mark. This is also the point where a string reversal will be expected.
The uncertainty in Bitcoin price movements is also visible in other altcoin charts. In over the last 24 hours, the latters are trending horizontally. They are Dogecoin, Darkcoin and NXT – each dropping 0-0.5%.