LTCUSD broke below the triangle support as highlighted in the previous update and is now setting its sights on the next major floor. This is located around the $72 level but a breakdown could set off a prolonged slide. Note that the chart pattern spans $72 to $100 so the resulting selloff could be of the same height.
The 100 SMA is still above the longer-term 200 SMA, though, so the path of least resistance might still be to the upside. This signals that the uptrend has a chance at resuming, especially if bulls defend the nearby support strongly. Then again, LTCUSD has already moved below the dynamic inflection points to confirm a pickup in selling pressure.
RSI has reached oversold conditions, though, so sellers must be feeling tired. Stochastic is also hovering around oversold territory to reflect weaker selling pressure and a possible return in bullish momentum once the oscillator pulls up.
Cryptocurrencies got smashed across the board by a number of factors. First is the news that South Korean authorities are looking into ending tax breaks for cryptocurrency exchanges as the surge in trading activity could warrant stronger security. According to an official:
“While crypto markets have seen rapid growth, such trading platforms don’t seem to be well-enough prepared in terms of security. We’re trying to legislate the most urgent and important things first, aiming for money-laundering prevention and investor protection. The bill should be passed as soon as possible.”
Next is Paul Krugman’s article, citing:
“Cryptocurrency enthusiasts are effectively celebrating the use of cutting-edge technology to set the monetary system back 300 years. Why would you want to do that? What problem does it solve? I have yet to see a clear answer to that question”
Next is the HitBTC news on going offline as the exchange isn’t working due to a hardware problem. They reiterated that all clients should feel safe about their funds, but the fact that the outage went over a few hours was alarming for many.