Bitcoin settled above $ 9,300
The crypto currency market has a mixed picture on Wednesday as Bitcoin and all major altcoins fluctuate in narrow ranges during the early Asian hours. Total market capitalization reached $ 251 billion. The average daily trading volume was $ 89 billion. And Bitcoin’s market share reached 66.8%.
BTC/USD hit a weekly high at $ 9,621.8 on November 4 and has been retreating ever since. At the time of my writing, the main digital coin is trading for $ 9,425, down 1.02% on a daily basis. The SMA 100 on the daily chart is located around $ 9,606 and seems to be limiting the recovery. It needs a clear break above it and a weekly high to allow the bulls to gain likely traction for the next goal at $ 10,000.
LTC sees optimism return, with the potential to rise again to three-digit prices
Currently, Litecoin is far from its peak value, reaching above $ 360 during the bull market of 2017 and early 2018. However, LTC has the potential for more significant profits, as the coin is considered as undervalued.
The crypto currency is seen as a relatively insignificant asset, although it has established stable liquidity. This makes Litecoin relatively attractive and has the potential for rallying, especially in times of BTC stability. LTC is one of the coins in which active and rapid price movement is associated with an increase in price action.
The coin has also recently saw a spike in daily transactions, to over 67,000 transactions a day, above the average of 18,000 a typical day. Litecoin has also shown its ability to rise in price amid pure speculation. More than 46% of all LTC volumes receive inflows from Tether (USDT), allowing the price to move independently. Also, keep in mind that LTC is still one of the assets that almost doubled its value in 2019, though still behind BTC’s performance.
Technical analysis of Litecoin
Litecoin is currently trading at $ 63.58, with increase of 3.75% over the last 24 hours. Yesterday, LTC extended its bullish move to the high at $ 64.02, but failed to keep above that level. That is why this peak is now acting as a short-term resistance.
If we look at the four-hour chart, Litecoin’s struggle to defend the $ 60 support is at its peak. In addition, the price moves within a formed rising triangle pattern. The first scenario is for Litecoin to break above the resistance of the triangle ($ 64) and open the door to $ 70. On the other hand, if the coin fails to clear the $ 64 hurdle combined with a correction below the trendline support, Litecoin can easily approach to $ 50.
In hindsight, a drop to $ 50 would not have a completely negative impact. It is likely that a new LTC demand will be created in the area and the basis for a potential rally towards $ 100 at the end of the year.
The Relative Strength Index (RSI) shows that the price is oversold in the short term (H4) and the reversal is at the beginning. Bulls hold relative control according to the Moving Average Divergence Convergence (MACD).
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.