Bitcoin price (BTCUSD) started the week at about 480. It has been falling sharply, and as we get started with the 4/18 US session, bitcoin is trading around 440. It has broken below a previous September low, and is cracking the August low, which is at 442. The 4H chart shows a bearish trend that is intact as evidenced by price action, moving averages, and the RSI reading. The RSI suggests the market might be oversold, but market can remain oversold in downtrends, and bitcoin is in one. Nonetheless, if there is a pullback, we should expect sellers in the 455-460 previous support area.
Bitcoin (BTCUSD) 4H chart 9/18
(click to enlarge)
Above 460, the 470 level might also provide resistance, and a bearish market should really not go above 470, or we will have to consider the market to be back into consolidation. A break above the current September high at 492 will be needed to open up a bullish outlook, but for now, bitcoin looks poised to test the 420 lows from April, with the 340, 2014-low also in sight.
Litecoin price (LTCUSD) is also bearish, but not as sharply as bitcoin is. In the 4H chart, we can see that litecoin has loss the bearish momentum when the RSI popped up above 60 and even 70. Price threatened a bullish signal when it crossed over the 200-, 100-, and 50-period simple moving averages (SMAs). But now price is back below the SMAs, and the RSI has tagged 30 to show some bearish momentum. Now let’s see if this bearish momentum will stick. The 4H RSI will have to hold below 60 to to show maintenance of the beraish mometnum. Price should also stay below the 5.00 handle. A break above 5.20 would put price back above the SMAs and take away the current bearish bias.
Litecoin 4H chart 9/18
(click to enlarge)
With the bearish bias in mind, we can expect litecoin to test the September low at 4.60. Then, as noted above, if price can hold below 5.00, the bearish bias remains, A break below the 4.60 September low will expose the 3.33 August low.
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