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Bitcoin and Litecoin face strong levels of resistance

Tuesday was a mixed day for major cryptocurrencies. The price of Bitcoin rose and closed at $ 9,774. Bitcoin Cash ABC (+0.18%), Litecoin (+0.97%) and TRX (+2.29%) also found support during the day.

On the other hand, Bitcoin Cash SV (-1.59%), EOS (-0.28%), Ethereum (+0.07%), Monero XMR (-0.10%), Ripples XRP (-0.19%) and Stellar Lumen (0.64%) ) struggled.

At the time of writing, the total market capitalization was $ 264.80 billion, while Bitcoin’s dominance was about 67.89%. Trading volumes for the last 24 hours on the crypto market reached 119.5 billion dollars.

 

Bitcoin is again fighting around the $ 10,000 level

Since Monday, Bitcoin (BTC) is locked in a narrow range between $ 9,800 and $ 9,400. Monday’s and Tuesday’s daytime candles were quite hesitant (doji candles), indicating that the market lacks a clear direction at these levels. The quintuple test at the key psychological level of $ 10,000 in the last 11 days can be analyzed in two ways. The $ 10,000 resistance level weakens with each test, or the resistance is so strong that buyers are unable to break it.

All we can do for now is look for breakthrough levels that could give us more clues about the future price action of the digital gold. If the 10K level is broken, the upward momentum may extend to the next resistance. Looking at the daily chart, Bitcoin is still moving in the bullish price channel, despite the retreat of $ 10,000. In addition, it is very likely to see a pattern of a golden cross if the 50-day SMA breaks above the 200-day SMA. With the right volume, Bitcoin can make a rally above $ 10,000, renewing the bulls’ desire to challenge the 2019 high at $ 13,800.

On the downside, outside the range, the first support is at 9 155. If the bears manage to break this level, they will head to a test at the lower border line of the bullish channel at $ 8,635.

 

Will Litecoin be able to break above the psychological level of $ 50?

Litecoin has finally shown some strength against the US dollar and is likely to continue until the end of the week amid positive news. On Tuesday, legendary video game producer Atari Group announced a partnership with the Litecoin Foundation, focusing on overlapping interests between cryptocurrencies and games. Not only will Atari accept investments in Litecoin (LTC), Bitcoin and Ether (ETH), but gamers will be able to pay for their upcoming video computer system with Litecoin and receive a discount.

At the time of writing, LTC/USD is growing by 2.24% and is trading at $ 45.85. To hold the upside momentum, the bulls will have to break the downside trend line on the daily chart, now localized at $ 47.50. Once that happens, buyers will be able to push the price to the 200-day SMA ($ 50.93), which is very close to the psychological level of $ 50. In the event of a stronger rally, supported by the wider crypto market, the next bullish goal would be $ 52.24.

On the downside, the closest support is at the 50-day SMA in the region of $ 43.83. A convincing move there could take the price for a re-test of the $ 39.41/00 area. If the price bounces off this support once again, it may offer us new buying opportunities.

 

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.

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Litecoin consolidates under $ 40

How has COVID-19 affected Bitcoin?

Today is the beginning of a new month and a new quarter. However, will the markets be able to recover after the first quarter’s severe blow from the Coronavirus?

While global stock markets posted major losses in the quarter, Bitcoin fell just 10.83%. The sharp decline of 24.9% in March actually reversed gains from the beginning of the year. But once it reached its three-month low, Bitcoin was able to advance by 75% in two weeks in a highly volatile period. This was despite the intervention of central banks on a scale never seen before in history.

At current levels, BTC/USD is only $ 700 below its position at the start of 2020 and $ 3,800 below its current annual high of about 10,300. That’s why Bitcoin now looks more and more -sustainable as an investment asset against traditional markets that are still struggling with significant losses as a result of COVID-19.

Statistically, the second quarter in a given year is usually the most profitable for Bitcoin holders. Since 2013, only once Q2 has yielded a negative return, with average gains totaling 65%. Still, the major cryptocurrency would have to break above $ 10,000 to form a new short-term bullish trend. Until then, the short-term bearish trend, formed since June 2019, remains intact.

 

How did the rest of the cryptocurrencies end the quarter?

As for the rest of the crypto market, major altcoins followed Bitcoin and most ended the quarter in the red territory. However, there were also cryptocurrencies that managed to end up on the green. Despite seeing a sell-off for the period, Ethereum gained 3.53% in the first quarter.

However, Ripple’s XRP dropped a total of 9.87%. EOS ended the quarter with a loss of 14.45% and Stellar’s Lumen finished down by 9.36%. Litecoin experienced a 32.58% crash in the highly bearish month of March. Thus, the sale-off wiped out profits from the beginning of the year and Litecoin closed Q1 with a decline of 4.72%.

 

Litecoin will only progress to a greater recovery if it breaks above $ 40

LTC/USD traded slightly up yesterday, rising from $ 38.44 to $ 39.30. Looking at the hourly chart, Litecoin consolidates into a big triangle. Currently, the price is trying to move towards the upper boundary of the triangle as purchase volumes increase. Also upside sign is that the price is trading above the 100-day moving average on the hourly chart.

The key resistance zone is the psychological level 40. If the Litecoin bulls manage to break through it, this should confirm the further upside momentum to the next targets at $ 43.45 and $ 45.

The bullish price action is also supported by RSI after recovering from its low levels on a daily chart. And while the RSI is targeting level 45, the $ 50 resistance is likely to be a springboard for the next rally to $ 60.

Meanwhile, the closest support is $ 37, followed by $ 34.50, $ 28 and $ 26.

 

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.

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Litecoin price goes to key resistance of $ 80

This morning is positive again for major cryptocurrencies. The bullish start of the day gave Bitcoin quotes up to $ 10,388. Along with it, digital assets such as Ethereum, Ripple, EOS, Bitcoin Cash, Tezos, and more also reported significant gains on Wednesday.

At the time of writing, the total crypto market cap is $ 296.27 billion. Bitcoin dominance has fallen further since the start of the week to 63.1% this morning. The trading volumes have increased and now amount to $ 138.83 billion.

Positive news for Litecoin holders

The Litecoin Foundation has announced a partnership agreement with Cred that will provide financial services to Litecoin holders. Cred is a licensed California-based lender and a popular cryptocurrency-based lending platform. The platform operates in 190 countries.

Litecoin (LTC) holders will be able to earn up to 10% on their digital assets through one of Cred’s partners, according to a press release. Some of them are Litecoin Foundation, Bitcoin.com, Uphold, and BitBuy respectively. Litecoin holders will be able to receive monthly interest payments for a six-month commitment. And also will have the ability to roll over the assets for additional periods.

Technical analysis of Litecoin

LTC/USD has risen 7.64% in the last 24 hours. In addition, the 50-day SMA approximates the 200-day SMA in an attempt to show that bulls have a greater impact on the price.

On the other hand, the formation of a rising wedge on the daily chart suggests that the Litecoin price could soon turn around. Especially if resistances at $ 80 and $ 100 are not cleared in time.

The bulls will need a clear break and close above $ 80 to see a move to $ 95.64 on the cards. At the moment, I prefer the strategy “buy on dips” if we have a potential decline to $ 65.50 – 64.30.

Litecoin price

However, if the bears manage to dip the price below this critical support at $ 64.30, the pair will lose momentum. In that case, the fall may extend to $ 60.50. There are located the 200-day SMA and trend line of support from the beginning of the year. A clear break below that region could send Litecoin back into the consolidation zone around $ 56.

As for the shorter technical picture, the pair managed to break above the bearish pennant on the hourly chart, which invited additional upside pressure on the horizon. A clear break above 95.64 should send LTC/USD for the test of psychologically important $ 100 level.

 

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.

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Geopolitics set the tone for the crypto market in the first days of 2020

Iran’s war boosts crypto market demand during the first week of the New Year

The new year starts with the improvement of the mood in the crypto sphere. The war between the United States and Iran affects all countries around the world. Some people worry that this could trigger World War III. On the other hand, the US stock market remains volatile amid fears that Iran’s retaliate could cause chaos.

The cryptocurrency market seems to be taking advantage of the US-Iran situation to gain momentum. Mostly Bitcoin presents itself as a safe haven for investors. Especially, since it is decentralized and can function without the censorship of any government. The rest of the cryptocurrency market responds accordingly in tandem with Bitcoin and the bullish momentum is likely to continue.

 

Bitcoin renews hopes for 2020

The main digital asset has jumped by 5.52% in the last 24 hours. Accordingly, Altcoins also show strength. Chainlink (LINK) gained 15.70% growth and Litecoin (LTC) 5.83%.

The total market capitalization of cryptocurrencies is now at $ 217.7 billion and Bitcoin’s dominance rate has risen to 69.1%.

Technically, Bitcoin would have to stay above $ 8,300 to see the first resistance test at $ 8,516.3/600.

We can expect the news to have a significant impact on the day, with volatility likely to come from events in the Middle East. I believe that Bitcoin could break through the second major level of resistance if the USA responds to Iran’s attacks against military bases in Iraq. But that region of $ 8,877- $ 9,000 would probably limit the bullish momentum in the event of a prolonged daytime rally.

If the price fails to hold above the first resistance, the main digital coin may recede.

 

Litecoin with a rally of 5.83% on Monday

LTC/USD is moving in a short bullish channel with the upper limit created by the upper line of the 4-hour Bollinger Bands at $ 48.00. Support was created by SMA 50 on the daily chart and the mid-line of the 4-hour Bollinger Bands around $ 44.00. A convincing breakthrough and movement in either direction should create strong momentum. This should allow further price action to develop in the direction.

Technically, we had a bullish crossover of moving averages on the 4-hour chart. As the SMA 50 breaks above the SMA 200, this indicates a continuation of the upward movement. On the upside, $ 50 could be the next target for the bulls. A clear breakout above this psychological level will open the doors to the $ 50.70 resistance. There is located the 100-Day SMA. LTC/USD has been trading below this SMA since mid-July 2019, which means that bulls may have a hard time taking it out.

On the other hand, a sustainable decline below $ 44 will turn short-term prospects to downward and will put $ 40 back in focus. This support was followed by the low for 2020 at $ 38.74 and the bottom line of the daily Bollinger Bands – $ 37.60.

 

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.

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