Bitcoin rallied from a low of 456.30 to begin the week to 492 before retreating. Note that this bullish attempt broke above a falling trendline and the cluster of 200-, 100-, and 50-hour simple moving averages (SMAs). This essentially invalidated a previous bearish signal made when bitcoin fell below support around 470. As we get started with the 9/11 US session, price is approaching this 470 pivot. Note that in this 470-780 area, we also see the cluster of SMAs and a rising trendline, as well as the broken resistance trendline. This pullback is a test of this week’s bullish signal.
Also note that the RSI tagged 70 and is now back to 40. IF the market is going to remain bullish heading into the weekend, we should probably see buyers during the 9/11 session as price approaches the 470 handle. Then a break above the 492 high will open up key resistance area around 534. A break below 470 puts bitcoin back in neutral-bearish mode, with downside risk to this week’s 456 low and possibly down to the 442 August low.
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Litecoin is also showing some short-term bullish outlook. Let’s go to the 4H chart, where we can see a few bullish signs.
1) Price is above a falling trendline resistance.
2) Price cleared above the 200-, 100-, and 50-period simple moving averages (SMAs).
3) The RSI has tagged 70, showing some nascent bullish momentum, or at least the fact that there is no bearish momentum so far in September.
The bullish breakout has opened up up the 6.19 high. Then, a break above 6.20 would liberate litecoin from a bearish outlook and introduce a bullish outlook for the medium-term. Now if price fails to push through today’s high around 5.50, and falls back below 5.09, litecoin would be back in the neutral-bearish mode, with pressure on the 4.60 low on the month. A break below 4.60 might be a sign of bearish continuation with downside risk at least back to the 3.60 August low.
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