BTC/USD, LTC/USD, Rally After Reversal - Bitcoin & Litecoin Price Outlook
Bitcoin & Litecoin Price Technical Forecast
Bulls Still In Charge
On Feb 7, Bitcoin printed its highest level in over three months at $9.867. The weekly candlestick closed in the green with % 4.2% gain. Similarly, Litecoin rallied to its highest level in over four months at $75.4 then closed the weekly candlestick with nearly 8% gain.
Alongside that, the Relative Strength Index (RSI) tested overbought territory in both markets emphasizing the strength of uptrend momentum.
Bitcoin PRICE DAILY CHART (March 31 – FEB 12, 2020) Zoomed Out
Bitcoin PRICE DAILY CHART (Sep 13 – FEB 12, 2020) Zoomed In
Looking at the daily chart, we notice in the second week of Jan Bitcoin reversed higher and broke above the neckline of double bottom pattern located at $7.860. On Feb 4, the price rebounded from the low end of current trading zone $9.080 - $10.959, then rallied eyeing a test of the high end of it.
A close above the high end could cause more bullishness towards $12.320. Further close above this level might encourage more BTC/USD bulls to join the market and push towards 13.835. Having said that, special attention should be paid to the weekly resistance levels underscored on the chart (zoomed in) as some traders might exit/join around these points.
On the other hand, any failure in closing above the high end of the zone may reverse BTC/USD towards the low end of the zone. Further close below this level could cause another retreat towards 7.617. Yet, the weekly support printed on the chart should be monitored closely.
LitEcoin PRICE DAILY CHART (April 3 – FEB 12, 2020) Zoomed Out
LitEcoin PRICE DAILY CHART (OCt 7 – FEB 12, 2020) Zoomed In
From the daily chart, we noticed that on Jan 30 Litecoin reversed downtrend move and broke above the neckline of inverted head and shoulders located at $62.60 eyeing a test of $90.00 handle.
Yesterday, the market pushed to a higher trading zone $74.55 - $84.66. Thus, a close above the high end may embolden LTC/USD bulls to push towards 99.40 contingent on clearing the weekly resistance levels marked on the chart (zoomed in).
In turn, any failure in closing above the high end of the zone reflects bull’s reluctance and may cause a retreat towards the low end of the zone as some longs could cut back. Further close below thus level might send LTC/USD even lower towards 62.20. Although, the daily and weekly support levels underlined on the chart should be considered.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.