We have started not only a new week, but what is more important – a whole new month. Markets should come back to life after holidays stagnation and generate not only higher trading activity but also volatility. How will it influence cryptocurrency market? We should see in the next few days.
Let’s start today’s BTC/USD and LTC/BTC analysis!
BTC/USD
Bitcoin to American dollar was in flat downtrend since early-July. In the first half of August, price slipped deeply during four sessions and currently, bearish momentum has a stronger slope.
Price touches local support level (472USD), which stopped further losses during few last session with high efficiency. As we can clearly see, hammer (pin bar) is forming, which indicates that bulls are gaining strength.
Pin bar (hammer) marked in a circle, may be a good purchase signal. However, it is worth to wait for another daily (or H4) candle to get setup confirmation. What is more, price will approach resistance really quickly. As you can see on the chart there is a downtrend momentum line in the vicinity (500USD).
We are still in the downtrend, so we cannot forget about real risk of further slumps. Potential down movements and not defending this very level opens a path to really important zone (in historical means) 441-440USD – strong support from May-2014.
LTC/BTC
Litecoin to Bitcoin is still under the influence of strong downward movement. Price is currently at 0.01028 level and on the daily chart it touched local support almost to the single pip– violated during last few sessions.
Price is closed in a really tight range (horizontal support from the bottom and downtrend line from the top). Before making any trading decisions, let’s wait for additional market signal and breaking before mentioned zone (in one of the possible directions).
