Hello traders,
There is some development in cryptocurrency space and I want to bring this out before it gets too late as there are several red flags in both Bitcoin and Litecoin chart.
Looking at 1 hour chart for Bitcoin first, we can see that $4000 was tested once again, but it fails to reach higher high ($4060). I drew blue box in the chart, because I feel there is a very strong resistance in this zone. So far, we see that $3950 is acting as good support (double bottom), and let's see how the market moves in next few days. (Stop around that region in case if you are holding Bitcoin). We may see tightening equilibrium to form and have another bullish rally, but the market sentiment is just not good enough. During this $4000 rally, majority of the altcoin was not following Bitcoin price which shows some weakness in the market.
Not let's go back to Litecoin. There are several red flags:
1) Bearish divergence in 4 hour chart (both MACD and RSI)
2) Rising wedge: this is a bearish pattern. If Litcoin price goes below the orange trendline, expect some selling pressure again.
Fortunately, we see some resistance and supports in the chart now so can start to swing trade based on those supports and resistances. The first support I am looking to get in is $57, followed by $54, $52, $46.
I am still feeling bearish in cryptocurrency space for now, until Bitcoin can go above $4200.
Happy trading!
There is some development in cryptocurrency space and I want to bring this out before it gets too late as there are several red flags in both Bitcoin and Litecoin chart.
Looking at 1 hour chart for Bitcoin first, we can see that $4000 was tested once again, but it fails to reach higher high ($4060). I drew blue box in the chart, because I feel there is a very strong resistance in this zone. So far, we see that $3950 is acting as good support (double bottom), and let's see how the market moves in next few days. (Stop around that region in case if you are holding Bitcoin). We may see tightening equilibrium to form and have another bullish rally, but the market sentiment is just not good enough. During this $4000 rally, majority of the altcoin was not following Bitcoin price which shows some weakness in the market.
Not let's go back to Litecoin. There are several red flags:
1) Bearish divergence in 4 hour chart (both MACD and RSI)
2) Rising wedge: this is a bearish pattern. If Litcoin price goes below the orange trendline, expect some selling pressure again.
Fortunately, we see some resistance and supports in the chart now so can start to swing trade based on those supports and resistances. The first support I am looking to get in is $57, followed by $54, $52, $46.
I am still feeling bearish in cryptocurrency space for now, until Bitcoin can go above $4200.
Happy trading!
Litecoin found resistance at $60, while Bitcoin attempts for bull wedge breakout (it seems like it got rejected for now). Litecoin bear flag is still in play. It seems like bears are still in control.