BTC/USD at today noon is traded around 585USD (Bitstamp price), LTC/BTC holds at 0.01276USD (according to BTC-e). Both cryptocurrency pairs are in the downward momentum – Bitcoin generates however really high volumes which may lead to higher volatility. In the same time LTC/BTC moves in the vicinity of the short-term trend line, where it is worth to look for purchasing signals.
BTC/USD
Bitcoin vs American dollar falls continuously since the July beginning, found itself below the monthly downward trend line. Price at the end of the month again touched historically significant support around 555-565USD. When the price lat time was near those areas (mid and end of June 2014) we have witnessed the dynamic rebounds. In this case it was the same, the price however relied on 50% of the local peak abolition (July 2) and began to fall rapidly again. The slippages stopped on the combination of a steep line of growth momentum and Fibo 23.8%.
Is is worth nothing that historically pair very strongly respected the Fibo retracement levels treating them as an important supports and resistance lines (for example 61.8% Fibo at 618.66 or 76.4% Fibo at 633.36). Price – currently supported – should climb this week on the H4 chart to the first resistance at 38.2% Fibo and the next one at 50% retracement – the zone gets extra power there due to the downward trend resistance. We should look here for selling opportunities – of course after earlier occurrence of sell signals.
LTC/BTC
Litecoin to Bitcoin as BTC/USD is now in a downward trend – it begun on the peaks of the mid-July. However, the supply momentum (marked with red line) has now greater importance. The price broke it, but since few days it decreases hovering above it, approaching lower consolidation band (July 25), which is also the historically strong level of support (0.01249). Recently (July 212) after a rebound from this level, price has gone up very rapidly creating a local high.
Currently, we seek purchase signals – you need to pay attention to the upper limit of consolidation (0.01320) that can stop longer upward moves. The next level of resistance shows itself at 0.01350 (blue trend line).
