Recently, the BTC/USD pair has greatly increased its volatility. This remains true not only for Bitcoin, as such a tendency can be observed throughout the market of cryptocurrencies. There are no vivid factors that have impacted such movements. Therefore, we can only assume that it is due to yet another correction and profit taking of the major market players.
At the moment, the situation remains uncertain.
What’s happening on the market:
- The market is still growing, acquiring the nature of bull markets.
- Clear levels are yet to be formed, while previous support and resistance zones due to volatility are no longer relevant at the moment.
What to pay attention to:
- Short positions are not considered since the market is still growing.
- The estimated support level of $2,500 was passed fairly easily. Assuming this is a factor of high volatility, it’s possible to expect the price to return back to its original position. As a result, a long $2,550 potentially looks good.
- The price has dropped below $2,250. This signals strongly to bears. But due to the overall structure of the market, short positions do not look very promising.
- Formation of levels. With any correction, support levels are always formed. At the moment, the situation is ambiguous. It could only be guessed where the price unfolds. Stay tuned to the market, especially to the $2,500 and $2,250 zones.
Ethereum is no exception. Last week, the $200 support zone proved to be right. However, at the moment, the price remains far from those levels.
Potentially, the $320 zone looks good, though now Ethereum is trading lower. Therefore, you need to wait for support levels to form, regarding the BTC/USD pair.
There’s ICO, it seems to indicate investors’ interest in ETH.
Another significant news is that the central bank of Singapore is planning to implement Ethereum Blockchain for tokenizing the national currency.
While there are no clear levels, monitoring the price turns as well as the news is highly recommended.
LTC has been trading in the $22-$35 channels since the beginning of May. Technically, everything remains exactly the same as it was last week.
The $23 zone looks good for purchasing.
Besides the technical analysis, follow closely the crypto market in general. Should the drop increase, LTC might be likely to be knocked out of its usual channel.
If the knockout is below $22, it would be a strong signal for short positions opening. But due to the conjuncture in the current market, it might be better to play long positions.
If there is a $22 blow and a rebound, it is a signal for long positions. Following this scenario, there might be the reversal opening the target at $33.
There’s been positive news for LTC. Just a few days ago, the creator of Litecoin, Charlie Lee, announced that he was leaving his position as Coinbase technical director in order to focus on Litecoin entirely.
If you are trading this pair, make sure to subscribe to Charlie Lee’s Twitter account https://twitter.com/SatoshiLite.