HomeBitcoin NewsBitcoin and Litecoin Awaiting Breakout from Consolidations

Bitcoin and Litecoin Awaiting Breakout from Consolidations

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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

bitcoin 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

litecoin 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.

Previous Post by Author: Bitcoin Consolidating Between 379 and 431

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Fan Yang
Fan Yanghttps://www.livebitcoinnews.com/
Fan Yang graduated from the University of Michigan with a Bachelors in Economics. He started his trading in 2006 after joining CMS Forex, a currency broker and became their Chief Currency Analyst. In 2010, he attained his Chartered Market Technician designation. Through the years, Fan has developed trading techniques that can be applied in stocks, currencies, and almost any asset class with liquidity. Although he specializes in technical analysis he uses fundamental factors to help guide his trade ideas before using the technical tools to plan out the trades.

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