The cryptocurrency market is not out of the woods yet. It has stopped the crash which took most cryptos more than 50% lower, but after the initial jump this market still seems uncertain. After the first jump following the crash, we haven’t seen further buying pressure.
The highs have been getting lower, as shown from the Litecoin chart above, while the lows are getting higher. So, a triangle is forming in most cryptocurrencies and Litecoin is heading towards the tip of it, which means that a breakout is expected soon at any direction.
Although, moving averages have been acting as support for LTC/USD today, particularly the 20 SMA (gray) and the 50 SMA (yellow). The ascending trendline which connects the lows is standing close below, so we might see a bounce soon.
Litecoin Live Chart
Bitcoin Cash looks even more uncertain as it remains in the middle of the two moving averages. The 200 SMA (purple) provided support during the crash, despite being pierced twice, while the 50 SMA (yellow) and the 100 SMA (green) acted as resistance at the top.
BCH/USD is bouncing between moving averages
Now BCH/USD looks like a lost puppy, uncertain where to go next. Although, the breakout of the triangle in Litecoin should give a hint at which direction the crypto market might go next. So, we are following the price action in Litecoin and Bitcoin.