A massive spike took place today across the crypto markets at 4 am UTC today.
Many major cryptocurrencies recorded increases in the double digits with all recording increases.
The market leader Bitcoin has managed to outperform all the top altcoins, but altcoins are all recording strong price increases nonetheless.
The price of Litecoin had recorded Doji candles on the weekly chart for the past two weeks reflecting uncertainty.
The price had been trading just above the level where price broke down in October $57.49 and found support here.
The price increase today is resulting in a Marubozu candle forming for this week which indicates strong buying pressure and momentum to the upside.
The weekly RSI and MACD are also increasing indicating strong buying pressure.
The next key weekly level to monitor for Litecoin is $73.52 where price found support several times in July before breaking below.
The price of Litecoin had been undergoing a long period of consolidation prior to today’s surge.
Since the surge, the price had a brief retracement but managed to find buyer liquidity and continue its strong upward movements.
A bearish divergence is currently forming on the hourly Litecoin which is a bearish trend reversal pattern.
However, this pattern is unlikely to hold much weight on future price direction given the bullish price action on the longer-term weekly timeframe.
Contrasting other major altcoins, Dash recorded a strong performance last week which may be playing a factor in its underperformance today.
Dash underperformed most other top cryptocurrencies today.
Data from Messari is showing the market leader Bitcoin increasing 16.09% over the past 24 hours while Dash has recorded 6.27% over the same timeframe.
Another key factor which may be playing into the underperformance is that price is approaching the point where it found buyer liquidity during price decreases in August.
The level may now be coming into play as resistance but the weekly candle is nonetheless forming a Marubozu candle reflecting the strong buying pressure.
Similar to the Litecoin hourly chart, the Dash hourly chart is forming a bearish divergence between the price and RSI.
However, this is also likely to have little impact given the strong price action recorded on longer timeframes.
- Crypto markets surged today at 4 am UTC with all top cryptocurrencies recording strong price increases.
- Marubozu candles formed for both Litecoin and Dash on the weekly timeframes.
- Bearish divergence forming for both on the hourly chart but this is likely to have little impact on price prospects.
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