The sentiment within the cryptocurrency market appears to be altering within the final a number of days, since final Wednesday. Every week in the past, the scenario was wanting very grim for cryptocurrencies since patrons had been nowhere to be seen and the bounces had been very minimal. Sellers have been in whole management the entire month in July and final Tuesday we noticed a break of the earlier assist, which was the June low.
However the subsequent day we noticed a sudden reversal larger, which became a bullish development, as Bitcoin moved above $40,000, whereas Litecoin climbed above $140, coming from a low of $104. There have been a variety of feedback final week, which had been constructive for cryptocurrencies, serving to enhance the sentiment on this market.
One of many fundamental information which pushed cryptos larger was that Amazon was going to just accept Bitcoin as a way of fee. Amazon rejected that declare, which was an element within the retreat within the cryptocurrency market, but it surely looks like it gained’t decide the destiny of this market in spite of everything.
Cryptocurrencies retreated practically 10% off the highs in a fast reversal, which regarded like a fast dump of cryptos after the goal was reached, particularly in BITCOIN which reversed on the resistance space above $40,000. Litecoin retreated from $140 and decline under $120, so it appeared just like the bearish development was again on.
However, the bearish momentum didn’t final lengthy as shifting averages became assist. The 20 SMA (grey) became assist earlier final week because the momentum was shifting, whereas the 200 SMA (purple) which was offering resistance in the course of the weekend became assist as nicely. Now LITECOIN is bouncing larger and is greater than $5 off the lows, with the stochastic indicator additionally turning larger.
So, it looks like the bullish momentum has picked up once more in cryptocurrencies fairly rapidly. It is a sturdy bullish sign, however the primary obstacles nonetheless stay above, at $140 and $180 for Litecoin, whereas in Bitcoin that resistance zone stretches from $40,000 till $43,000. We need to go lengthy on Litecoin, however let’s see if this bullish momentum will proceed.