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Bitcoin and Litecoin Fading a Price Bottom Attempt

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Bitcoin and litecoin started the week consolidating after downswings last week. Then during the 9/23 session, both popped up showing signs that it wants to put in a price bottom. Will these reversal attempts stick?

Bitcoin (BTCUSD) 4H Chart 9/24
bitcoin 4h chart 9/24

(click to enlarge)

In the 4H BTCUSD chart, we can see that price rallied from around 393 up to about 452, with strong volume. While the 4H candle is a strong one, it only took away a couple of bearish signs – it broke above the 50-period simple moving average (SMA) in the 4H chart, and the 4H RSI popped up above 60 showing loss of bearish momentum. However, the fact that it respected the 100-period SMA maintains some bearish bias. The RSI didn’t push above 70, so there is a lack of bullish momentum.

As we get into the 9/24 session, we can see a pullback. Let’s see if this pullback will be supported above the 410 pivot. Then if price pops up above 480, bitcoin would clear above a falling trendline and above all the 200-, 100-, and 50-period SMAs. This would introduce a bullish outlook, especially if the 4H RSI pushes above 70.  Note that price is currently holding above the 50-period SMA, which is a sign that bulls are trying to take control again.

Litecoin 4H Chart 9/24
litecoin 4h chart 9/24
(click to enlarge)

The technical picture in the 4H Litecoin chart is very similar to that of bitcoin. After consolidating around 4.00, price popped up, broke the 50-period SMA, and the 4H RSI broke above 60. Price respected a falling trendline from a couple of weeks ago, as well as the 100-period SMA. As it pulls back, litecoin is finding some support from the 50-period SMA, which can add to the bullish bias in the short-term. If price can push above 5.0, litecoin would clear above the falling line, and above all the SMAs. This should introduce a bullish outlook especially if the RSI also pushes above 70.

Previous Post by Author: Bitcoin and Litecoin Awaiting Breakout from Consolidation

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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