After a brief consolidation yesterday, Litecoin continued its surge which it started on Sunday.
The initial surge was preceded by an inverse head and shoulders pattern, and after increasing 10% against the USD, other major cryptocurrencies started following.
The big question for analysts today is whether we are seeing a repeat of this?
The surge which took place in Bitcoin on Sunday failed to surpass its prior high at $4240 – as shown by the red arrow on the chart above.
A follow-up surge which brings price action above this point would be bullish for price action.
However, if the price does surpass this point, it is likely to meet some resistance at $4350.
$4350 to $4550 was an area of consolidation during the bearish crash which took place in mid-November before price continued its drop. It would be a likely area of seller liquidity.
The shorter-term 4-hour Bitcoin chart shows price action starting to increase in recent candles.
If Litecoin is leading the market, this increase is likely to accelerate over the next few candles.
If the price drops from here back below $4000, the next key support level to monitor is $3700.
- Litecoin is surging once again and may be paving the way for a surge in Bitcoin.
- The last surge in Bitcoin failed to overcome the prior high at $4240.
- If the price manages to overcome $4240, $4350 will be expected to come into play as resistance. If the price drops back below $4000, $3700 is the next area of support to monitor.
Latest Bitcoin News:
|DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.|