Cryptocurrencies have turned bearish this month after being quite bullish in October, losing all the gains made last month. The crackdown on cryptocurrencies continues, which has been weighing on the sentiment, pulling the market down. China said earlier this month that they will continue to escalate the crackdown, the US is trying to bring cryptocurrencies under taxation under the new infrastructure bill, while now India might ban private cryptocurrencies, which has led to a number of crypto holders in India to cash out on their holdings.
This has escalated the decline further today, with Litecoin falling below $200, while Ethereum is deciding whether to hold the larger bullish trend or fall further around $4,000. So, let’s see where LTC and ETH stand now and where they’re headed.
Litecoin Daily Chart Analysis – LTC Trying to Decide Around $200
Let’s see if the price will close above or below $200 today
Litecoin saw a sudden surge earlier this month, after being boring for several months, trading sideways below the 200 daily SMA (purple). The partnership with Visa which will bring the Litecoin Visa debit card helped improve the sentiment for this cryptocurrency, since this would mean that Litecoin will now be accepted everywhere where Visa is accepted, which will increase the number of daily transactions tremendously, above the current 150K.
LTC/USD was holding the gains well after surging from $200 to $300, where it stayed for several days. But, the continued war on cryptocurrencies pulled LTC down and today the price fell below the 50 SMA (yellow) which was acting as support and below $200 as well. Although, LTC is trading close to $200 so traders are trying to decide whether to buy this crypto or let it slip lower for a few more days. We will see where today’s candlestick closes. if it closes above $200, then we might see a bullish reversal in the coming days.
Ethereum Daily Chart Analysis – The 50 SMA Still Holds As Support
The price remains above $4,000 in Ethereum, despite piercing below it briefly
Ethereum turned quite bullish in October, increasing above $4,000 and then breaking above May highs, to place a new all-time high closer to $5,000. It pulled back this month, but the pullback wasn’t looking too bad for Ethereum, as it was still holding above $4,000, which has turned into a major support area now.
The 50 SMA (yellow) held as support on the first dip earlier this month and we saw a bounce off that moving average. Then we saw a return to this moving average a few days later, but it held once again and yesterday climbed above the 20 SMA, which gave the impression that the bullish trend was back on. Ethereum surely wants to turn bullish after the Ethereum 2.0 update, but the bearish sentiment in the market is keeping it down. Although, if the decline in the crypto market stops, then ETH/USD will surely head higher again from here, despite the piercing of the $4,000 level.
ETH/USD