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Bitcoin and Litecoin have been consolidating after last week’s decline. While the cryptocurrencies seem resilient at their current levels, the prevailing downtrends are still intact. Let’s take a look a look at their charts.
Bitcoin (BTCUSD) 1H Chart 9/23
(click to enlarge)
The 1H chart shows that bitcoin is consolidating between roughly 379 and 431. We also have central pivots 410 and 395. So far, price is pushing at 395, showing bearish pressure toward the 379 low. Note that the 200-, 100-, and 50-hour simple moving averages (SMAs) are in bearish alignment, and price is holding below them. The RSI has also held below 60 for the most part, showing maintenance of the prevailing bearish momentum.
A break above 410 would put the focus on the 431 area, around which the 200-hour SMA resides, and therefore reinforces the resistance.
Now, a break below 378 would open up the 340 low on the year. On the other hand, if price rallies above 432, and the 1H RSI pushes above 60 and even above 70, we would have to shift the bearish outlook to a bullish correction or consolidation outlook.
Litecoin (LTCUSD) 1H Chart 9/23
(click to enlarge)
Litecoin is also consolidating but has a more bearish tilt because it made a new low over the weekend at 3.91. It is now consolidating above 4.00, but there is a pattern of lower highs and a falling trendline. The 4.20 area could be key because if price reaches here today ,it will test the 100-hour SMA and the falling speedline. A break above 4.20 would be a key breakout that can open up the 4.6 area, or just below it, where the 200-horu SMA resides along with a resistance pivot from 9/20. A break above 5.00 will be needed to put the bearish outlook on the shelf for a consolidation period in the short to medium-term. However, if price continues lower, the next support below 3.90 will be the August-low of 3.33. Below that, the 2.21 low on the year will be in sight.
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