It seems like cryptocurrencies are not finding the strength to get it going, especially this month. In the last two months, we saw some major declined, but also saw some resilience in the crypto market, as cryptocurrencies kept bouncing up, despite the extreme selling pressure.
In July, the selling pressure has slowed and the volatility has decreased considerably, but the pressure remains to the downside. Although, the worst thing for crypto investors is the fact that we are not seeing any attempt to stop the slide and reverse the trend eventually.
BTC/USD
China continues to close more BITCOIN mining facilities, which is adding further to the bearish sentiment in the market, pushing cryptocurrencies further down, as we explained in our 2021 Bitcoin forecast. Bitcoin turned bearish earlier this week, pushing the price down to $31,600, although yesterday we saw a small bounce higher.
But, the bounce didn’t last long; in fact it didn’t even climb above the moving averages this time. Instead, it turned down again at the 100 SMA (green) on the H1 chart and now sellers are heading for the lows again. So, the pressure is already very bearish in Bitcoin, so it is quite dangerous buying it now. It will be a better place to look for a bounce close to $30,000, so until then we are just watching the price action here.
Retraces higher ending lower every time for LTC/USD
The situation looks similar in Litecoin as well. The price is sliding lower indeed, although the pace has slowed. But, we are not seeing any decent attempts at reversing the price or even for a decent bounce so we can sell this digital coin. Yesterday’s retrace higher ended at the smaller moving averages, whish is another sign of weakness from buyers, while today Litecoin is challenging the lows again, so buyers remain in charge. $120 is a decent support area, so we will see how LTC/USD behaves when it gets down there.