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Litecoin [LTC/USD] Technical Analysis: Constant battle between the bears and the bulls rages on

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Litecoin [LTC/USD] Technical Analysis: Constant battle between the bears and the bulls rages on
Source: Unsplash

Litecoin, the seventh-largest cryptocurrency in the world, has been gaining traction, after going on an adoption spree in the past few days. Restaurants in some parts of the US are now accepting LTC for their services and a game developed recently, Coindriod, uses Litecoin and other cryptocurrencies in-game to destroy bots.

At the time of press, the currency was trading at $52.26, with a market cap of $3.08 billion and a 24-hour trade volume of $369 million.

1-hour

Source: Trading View

There has been an acute uptrend in the one-hour trend starting from $49.52 to $51.54, while the downtrend has started to form and extends from $55.69 to $51.79. The short-term supports are formed at $50.38 and $49.47.

The Bollinger bands are in a state of expansion, indicating an addition of volatility in the market. The prices are falling below the EMA, indicating a bearish trend.

The Aroon up line has bottomed at the zero line, indicating that the uptrend has exhausted. The Aroon downline, however, has struck the top line more than a few times, indicating that the downtrend is dominating.

The RSI, just like the Aroon up line, has submerged to the bottom, indicating that the sellers are controlling the market i.e., the market is bearish.

1-day

Source: Trading View

The uptrend is small, but is starting to develop from $48.95 to $51.79. The downtrend spans over the range of $125 to $55.88. The prices recently broke the support at $50.55, leading to the creation of a new support at $48.55.

The resistances are holding steadily without any breaches. The immediate resistance is at $63.11, following which the successive resistances are setup at points $67.75, $88.99, and $101.11.

The Parabolic SAR markers are forming below the candlesticks, indicating an imminent bullish trend reversal.

The MACD indicator is showing a bullish trend due to the bullish crossover of the MACD line and the signal line. The MACD histogram is showing green bars, indicating the same.

The Awesome Oscillator shows a bearish crossover imminent as the spikes are starting to bud over the zero line in red.

Conclusion
The one-hour time frame is showing a rather bleak future for Litecoin as the Bollinger bands, RSI, AO, and Aroon all indicate an occurrence of a downtrend and bearish move. The SAR, MACD and the AO in the larger time frame are showing bullish signs, even though the prices seem to be dropping.





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Wall Street is on the losing side of Bitcoin’s impressive price rally

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Even as Bitcoin breaks $13,000 Wall Street is on the losing side of the price rally
Source: Unsplash

Wall Street, complete in their tailored suits, suede shoes, and leather briefcases, have once again placed their bets against Bitcoin.

Despite the fact that the collective cryptocurrency market broke the $350 billion mark, with Bitcoin alone accounting for 62 percent of the same and trading at $2,000 over its price at the beginning of the week, hedge funds were not impressed.

The Wall Street Journal citing data from the Commodity Futures Trading Commission reported that crypto-vested managers were holding 14 percent short positions more than long ones on the now, primary avenue for BTC Futures contracts, the Chicago Mercantile Exchange [CME].

A key point to remember here is that CME contracts are cash-settled and hence, no Bitcoins are actually being transferred, with the traders simply placing bets on the cash-equivalent price of Bitcoin.

Well-suited hedge fund owners however weren’t alone, with other stakeholders excluding the small scale crypto-investors holding a 3x on short positions, indicating a further pessimistic sentiment.

Smaller investors were however, long on the BTC market, with the CFTC report stating that investors holding 25 BTC or less were holding four times the long positions as their more exuberant counterparts. It should be noted that the CFTC report was prepared as the price of Bitcoin was still in the $9,000 range, prior to the five-figure surge.

BitMEX, a popular cryptocurrency exchange offering derivatives trading services, saw over $64.38 million in shorts liquidated when Bitcoin broke $10,000. The same was replicated when the price shot past $12,000.

Short positions indicate not just a sheepish position, but rather an investors’ contractual affirmation that the price of an asset will more likely fall than rise. Long positions on the other hand, indicate a pessimistic point of view. Hence, based on Wall Street’s trading activity, institutions are not buoyant about the cryptocurrency market.

In what could be a reverse-catalyst for the digital assets industry, Bitcoin decided to use this negativity as fuel to breach $11,000 earlier this week. Not done with the Wall Street bears just yet, BTC pumped yet again on June 26, with the price breaking the $12,000 ceiling with a further climb to $13,000 looking likely.

Who said Coin Street doesn’t go past the Wall Street express lane?





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