Bitcoin (BTCUSD)
Bitcoin was a bit choppy this week. After falling below last week’s consolidation low of 470, bitcoin found support at 456 and rallied back above some key resistance factors.
– A falling trendline was broken.
– Price rallied above the 200-, 100- and 50-hour simple moving averages (SMA).
– The RSI climbed above 70 to show strong nascent bullish momentum in the 1H time-frame.
Bitcoin (BTCUSD) 1H Chart 9/12
(click to enlarge)
However as we wind down the week, we are seeing price return below the SMAs, and below this week’s rising trendline. Furthermore, the RSI is now threatening to drop below 40, which would reflect loss of bullish momentum.
It looks like bitcoin has shifted back to the bearish mode, especially since it failed to break above last week’s high around 496. Price looks poised to test the 456 low. If price extends lower, it would open up the 442 August low. Below that the 340 low on the year would be in sight.
At this point, only a break above 500 should put away this bearish outlook and introduce a bullish one toward a resistance at 534. A break above 477 would be an early warning, and would put bitcoin back into a consolidation mode.
Litecoin (LTCUSD)
Litecoin rallied this week and broke above a descending triangle seen in the 1H chart and a larger one seen in the 4H chart.
– The 200-, 100-, and 50-hour SMAs are in bullish alignment, sloping upwards, and was spreading apart, while price was above all of them. This represented a strong bullish development.
– The RSI has pushed above to show strong bullish momentum.
Litecoin retreated from 5.68 and as we wind down the week during the 9/12 US session litecoin has formed a descending triangle right above the previous triangle. The RSI is trying to hold above 40, and price is trying to stay above the moving averages, though it is testing the 50-hour SMA at the moment.
Litecoin is essentially trying to hang on to this week’s bullish trend and momentum. A break above 5.70 would continue the short-term bullish outlook toward a key resistance at 6.19.
Litecoin (LTCUSD) 1H Chart 9/12
(click to enlarge)
