Weekly Technical Report on Cryptocurrencies,
3 September, 2019
BTC USD (CMP: $10350)
Diagram 1: Daily Chart of BTC USD with 100 Day Average
In the previous issue of this weekly report, we had mentioned about impending weakness and downside break out of a symmetrical triangle pattern on daily chart. Well, true to our expectation, BTC broke 10100 levels with great vengeance & came as low as 9361 (We mentioned of support at 9200). In the same process 100 day average was also taken out. Now what is expected in near future?
Diagram 1 shows an intermediate support at 9400 odd levels in BTC and in the month of July this level was successfully tested at least in two different occasions. We are not expecting 9400 to be easily given up by the bulls anytime soon. But having said that we must also re-iterate that the trend continues to remain vulnerable and immediate resistance looms large at 11000 odd levels. As long as BTC keeps below this resistance, possibilities of further weakness cannot be eliminated, because only if BTC manages to venture above 11000, the series of lower tops will be nullified.
LTC USD (CMP: 67.5)
Diagram 2: Daily Chart of Litecoin
Although the flagship crypto Bitcoin is not as weak & still holding above important supports, the same may not be told about other crypto currencies. The likes of Ether, EOS, Bitcoin Cash or Ripple have seen significant value erosion from their recent top and under-performing BTC by a wide margin. Today we take up Litecoin for analysis.
The primary downtrend is pretty obvious from the daily chart in Diagram 2 and can be summed up easily by a single line. Noteworthy, the present pullback: its another weak attempt on part of the bulls and lacks any significant volume support. Odds are high that this dead cat bounce will again collide against the wall of resistance at around 70 regions and head lower, and that might provide a selling opportunity with stop 73.
The resistance of 73 is important as only above this level we can expect Litecoin to put up strength in near future.
