Cryptocurrencies finally seem to change their mood, offering buyers the opportunity to take initiative
BTC/USD, LTC/USD, XMR/USD, NEO/USD have managed to make significant upside movements during the American and Asian trading sessions. Bulls seem to take control over the market. Midterm downside tendencies were broken as Bitcoin, Litecoin, Monero and NEO prices are rising above the descending trend lines. The situation looks promising for the buyers and they can develop their success in the next several hours.
BTC/USD
Bitcoin has started a correction yesterday, which is looking like a complete reversal. BTC price is now above the descending trend line, alerting traders to the possibility of significant short and midterm changes. BTC/USD has entered the Ichimoku cloud during the American and Asian sessions. It is still there and is testing the upper boundary of the formation.
As we can see, there was one Shooting Star during the Asian session, which led the currency pair to a brief decline towards the lower boundary of the Ichimoku cloud. We now have two more Shooting Stars which are able to drive BTC price to the lower side of the formation, as there is a sort of channel trading now, which is natural for such situations when the price is within the Ichimoku cloud.
The lower boundary of the Ichimoku cloud coincides with the $9,200 support line. If Bitcoin price goes there, BTC/USD will test this line and we advise readers to look for candlestick signals close to the support area. If the candles indicate reversal, the price will probably rebound from the support and go upwards. If there are no signals and BTC price falls below the support, BTC/USD will probably move to meet the descending trend line.
There is another scenario, where Bitcoin fails to fall towards the support area and breaks through the upper boundary of the Ichimoku cloud without any further correction. Then, it is going to test the $9,440 area.
As for the daily chart, the midterm picture had no significant changes. However, we can see that the upper boundary of the Ichimoku cloud held BTC price above the formation and there is probability for the development of an upside tendency.
LTC/USD
Litecoin followed Bitcoin in its upside tendency as LTC/USD jumped over the descending trend line during the Asian session. LTC price is now close to the lower side of the Ichimoku cloud. If Litecoin tests it successfully, there are more chances for the cryptocurrency to develop its upside tendency. The Ichimoku cloud is rather thin there and Litecoin price will probably meet no significant resistance. The next level to pay attention to in this case is the $165 resistance line.
Another possible scenario is where the bears try to take the initiative. They will attempt to drive LTC/USD lower until the descending trend line, at least. However, this scenario is not the primary one, as bulls are getting stronger and the situation looks promising for them.
LTC price is still below the ascending trend line on the daily chart, but it fails to reach the lower boundary of the Ichimoku cloud. There are some signs that LTC/USD will be able to return above the ascending trend line. If this happens, Litecoin will test the upper boundary of the Ichimoku cloud at midterm.
Check more details on XMR/USD and NEO/USD pairs HERE and also post review HERE