Bitcoin and litecoin started the week consolidating after downswings last week. Then during the 9/23 session, both popped up showing signs that it wants to put in a price bottom. Will these reversal attempts stick?
Bitcoin (BTCUSD) 4H Chart 9/24
(click to enlarge)
In the 4H BTCUSD chart, we can see that price rallied from around 393 up to about 452, with strong volume. While the 4H candle is a strong one, it only took away a couple of bearish signs – it broke above the 50-period simple moving average (SMA) in the 4H chart, and the 4H RSI popped up above 60 showing loss of bearish momentum. However, the fact that it respected the 100-period SMA maintains some bearish bias. The RSI didn’t push above 70, so there is a lack of bullish momentum.
As we get into the 9/24 session, we can see a pullback. Let’s see if this pullback will be supported above the 410 pivot. Then if price pops up above 480, bitcoin would clear above a falling trendline and above all the 200-, 100-, and 50-period SMAs. This would introduce a bullish outlook, especially if the 4H RSI pushes above 70. Note that price is currently holding above the 50-period SMA, which is a sign that bulls are trying to take control again.
Litecoin 4H Chart 9/24
(click to enlarge)
The technical picture in the 4H Litecoin chart is very similar to that of bitcoin. After consolidating around 4.00, price popped up, broke the 50-period SMA, and the 4H RSI broke above 60. Price respected a falling trendline from a couple of weeks ago, as well as the 100-period SMA. As it pulls back, litecoin is finding some support from the 50-period SMA, which can add to the bullish bias in the short-term. If price can push above 5.0, litecoin would clear above the falling line, and above all the SMAs. This should introduce a bullish outlook especially if the RSI also pushes above 70.
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