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Market Update: Bitcoin Holding above $4000, Litecoin to Correct Lower?

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From yesterday’s high at $141,244,802,687 the evaluation of the cryptocurrency market cap has decreased to $138,8B level at first but since then it started slightly to the upside again and is currently sitting at around $140,118,885,992 and was slightly higher as it came to $140,611,000,000 at its highest point today.

Bitcoin Price BTC

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On the global chart, you can see that the evaluation started creating a slight downtrend as the price action started creating lower highs but the last two lows are slightly higher which could mean that the buyers have started moving their positions to the upside and are going to push the prices higher.

The market is in mixed color today with an insignificant percentage of change among top 100 coins as the average percentage of change in the last 24 hours is ranging around 0.8%.

The biggest gainers are Maximine Coin with an increase of 35.81% Ravencoin with an increase of 23.94% and Maximine Coin with 21.27% increase. Out of those who are in red the biggest loser is ABBC Coin with a decrease of 14% while others are in single digits.

Bitcoin’s market dominance has been hovering around the same levels as yesterday at 50.8%.

Bitcoin BTC/USD

From yesterday’s high at $4120 the price of Bitcoin has fallen down to around $4050 at its lowest point today but since then it started moving to the upside again and is currently sitting at $4074 area.

On the hourly chart, we can see that the price action created a descending triangle with the price currently retesting its resistance levels and the resistance is it looks like the resistance is there judging by the last two red hourly candles. The price of Bitcoin came to its first significant resistance zone around the falling wedge of a higher degree resistance line but there is still some upside potential before the increase ends but since the price action created a descending triangle I would be expecting a breakout to the downside at first.

This could lead the price back to the $3994.4 area where the horizontal resistance level is for a retest of support before continuing to move to the upside for interaction with the mid resistance point with the ascending triangle of a higher degree resistance line. If the price continues moving above it as well the next significant resistance would be at $4300 which is the upper horizontal line of the resistance zone above.

Market sentiment

Bitcoin is in the buy zone.

Pivot points

S3 3446.4
S2 3743.9
S1 3916.0
P 4041.4
R1 4213.5
R2 4338.9
R3 4636.4

Litecoin LTC/USD

From yesterday’s high at $64.165 the price of Litecoin has decreased by around 7% to its lowest point today as it came down to $59.65 at its lowest point today. Like in the case of Bitcoin the price has started increasing again from there and is currently sitting at $60.484.

On the hourly chart you can see that the price of Litecoin came up again above the upper level of the horizontal resistance zone but came up for interaction with the ending diagonal’s resistance level where it found resistance as immediately after the spike to it the price started decreasing strongly.

As we’ve most likely seen the completion of the ending diagonal seen on the 5th wave ending point the move to the upside for Litecoin has ended which is why now most likely we are to see the start of a downtrend.

The price of Litecoin now heading down to some of the support levels for a retest of support so the resistance zone levels would now serve as significant price points, but if my count is correct and we are to see the start of a downtrend the price is heading down further below the resistance zone again potentially all the way down from there the increase was made which would be around $45 area where the first support level below the resistance zone is an even further below that which we are yet to see depending on the momentum.

Market sentiment

Litecoins hourly chart technicals are signaling a strong buy.

Pivot points

S3 39.337
S2 49.589
S1 55.995
P 59.841
R1 66.247
R2 70.093
R3 80.345

Conclusion

The market has experienced an increase over the weekend and has attempted to continue the increase from Monday but the price only came slightly lower then the high made on Saturday.

The price action in the case of Bitcoin has created an descending triangle which is why a breakout to the downside would be expected while we can see an ending diagonal on the chart of Litecoin which is usually seen at the end of the last, 5th wave.

For these reasons I would be now expecting a movement to the downside as the increase made was correctional but we could see the prices continue to another increase which could in the case of Bitcoin be to around $4200-4300 level.

The post Market Update: Bitcoin Holding above $4000, Litecoin to Correct Lower? appeared first on Blockonomi.

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