The volatility continues to stay excessive within the cryptocurrency market, with strikes price 1000’s of pips. Unil final week, the volatility remained to the upside, because the sentiment remained fairly bullish, however final week the scenario modified.
Litecoin turned bearish as did most cryptos, on rumours that the US would apply a tax on cryptocurrency positive factors. That turned the crypto market bearish and the truth that it was time for a good retrace decrease to refresh this yer’s large bullish development added to the bearish momentum.
Bitcoin fell to $47,000 final evening based on my broker but it surely has reversed increased, buying and selling simply above $54,000 now, which implies a $7,000 climb. LITECOIN has elevated to $243 from the $207 lows final week.
The 200 SMA (purple) held as assist for Litecoin regardless of being pierced a few instances. The bounce got here after the pin candlestick which is a bullish reversing sign. Though, Litecoin is dealing with obstacles above at round $250 now.
The 50 SMA (yellow) and the 100 SMA (inexperienced) have each acted as assist on the H4 chart, as proven above. Now they stand at $250, prepared to supply resistance on this timeframe chart. The stochastic indicator is overbought now, whereas the shopping for strain has slowed.
Now comes the check for Litecoin; if it strikes above the shifting averages, then the bigger bullish development might be again on, if it fails, then there might be extra ache for us since we’re long on LTC/USD and are round 4,000 pips in revenue already.