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Crypto Market Update: Consolidation Before a Drop Bitcoin (BTC) & Litecoin (LTC) Price Analysis

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Cryptocurrency Price Market Watch

From yesterday when the evaluation of the crypto market was at its highest around $211B we have seen a decrease in the market evaluation by 2.3 billion dollars.

  • Market Cap: $208,715,142,868
  • 24h Vol: $10,469,201,828
  • BTC Dominance: 53.8%

Cryptocurrency Price Market Watch

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As you can see from the global chart the evaluation is inside a triangle like a pattern with a breakout looking like about to happen very soon. This triangle was created after the spike last Monday which retested the resistance from the descending channel as the market entered consolidation. Now that the evaluation has bounced off its support a short-term increase is expected potentially breaking out of the minor triangle and heading toward the descending channels resistance line again. Ultimately the wave structure is expected to head down so any upward move would be considered temporary.

Bitcoin’s dominance is still around the same levels but as the pressure is still present on the resistance of the minor descending line and having in mind the inverse correlation between the global chart it looks like the trend of the increase in Bitcoin’s market dominance is going to continue.

Bitcoin Price BTC/USD

From yesterday’s the price of Bitcoin hasn’t changed much. It went from its high at $6626 to $6536 at today’s low and has recovered since as its now trading around $6563.

Click to Enlarge Chart

Looking at the hourly chart you can see that the price action has found support on the higher degree symmetrical triangle support line and has bounced off of it with a strong green candle forming a higher low. Today we are going to see if a higher high is going to be made than the last one at $6651 or a breakout from the downside is going to be made which is thought is more likely considering the price context. I believe that the price is going to struggle to stay above the significant level before it finally collapses below it and the horizontal support at $6516 with a massive red candle.

Market sentiment 

Bitcoin is in the neutral zone as oscillators are signaling a buy and moving averages a sell. 

Pivot points 

S3 3901.2
S2 5394.6
S1 5988.1
P 6888.0
R1 7481.5
R2 8381.4
R3 9874.8

Litecoin Price LTC/USD

From yesterday’s high the price of Litecoin has decreased by 1.49% as its currently trading at around $53.2

Click to Enlarge Chart

Looking at the hourly chart you can see that the price broke out from the downside and is again below the descending channels resistance line but above the median horizontal support level from the support zone range in which the price action is from August 14th low. As the price fell near to the horizontal level I have projected that it going again to the channels resistance line for a retest before getting rejected and head to the significant horizontal level for a proper interaction and potentially going below it on the next run down. In that case the price will look for another support and the next in line is at $49 which is my target for the upcoming period.

Market sentiment

Litecoin is in the neutral.

Pivot points 

S3 36.173
S2 46.173
S1 50.212
P 56.173
R1 60.212
R2 66.173
R3 76.173

Conclusion

With the global chart showing the signs of consolidation and the charts of the two major cryptos showing sighs of weakness it looks like the consolidation period is soon going to end after which a further depreciation in prices will occur. We might see a breakout today, but I believe that the market is in for more sideways movement before any serious moves.

The post Crypto Market Update: Consolidation Before a Drop Bitcoin (BTC) & Litecoin (LTC) Price Analysis appeared first on Blockonomi.