Drifting lower

I haven’t had much to post about lately as I sit around bored waiting for change in market sentiment. It takes rises of hundreds of percent to get me excited. But anyway probably due a post so here we are for another bitcoin update.

Obviously price is annoyingly drifting down towards the lower of my two horizontal lines somewhere around $400 or just below. It could be that we are heading lower again, it could drop below that horizontal line at $400, personally I doubt it would get far below that. However I’ve marked on the chart below new parallel trend which is providing resistance and forming a bearish channel, leading price in that direction.

Heres my bitstamp chart showing recent bubble collapse with usual trendlines and 1 day candles but this time including momentum indicator.

I’ve got sneaky feeling bears are running out of steam. Unless China bans bitcoins AGaIN! However momentum indicator is showing bullish divergence.

Switching over to Litecoin for a bit it looks a bit like litecoin doesn’t want to fall below $10, price wants to break up through a down trending line I’ve marked. Heres Litecoin on BTCE exchange with 1 day candles showing trend line I’m referring to.

Quite intruiged by the possibility litecoin might lead a rally before bitcoin this time. However judging by ltc/btc ratio you’d expect bitcoin should be stronger of the two for a while yet. Time will tell I guess. I’m tempted to diversify into some other cryptos at some point though, maybe I should dip my toes in soon and get a few litecoin? Any tips on doing that would be welcomed in the comments.

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9 thoughts on “Drifting lower

  1. I have an account on BTC-E, where I can exchange between a handful of currencies. In the past, I just send money from my Bitcoin wallet to my BTC-E account and purchase Litecoin with it.

    1. Thanks Christopher. Do you need to provide proof of ID like copies of passports and things for that? Ideally I’m after ways of doing it without that hassle if I can.

      1. About btc-e : If you want to cash in, you need ID proof for using bank wire transfert.
        There a planty of solutions with or without KYC process i don’t know. What I know is fees are higher.

  2. Thanks for the update.
    What does the momentum indicator mean by and large ?

    I’m invested 20% in Litecoin and in twenty other virtual currencies for very modest amounts (but just in case šŸ˜‰ ). I consider the potential of rise of LTC a lot more important than bitcoin. During the last bubble, the pair LTC/BTC came up til 0.05 against 0.024 today. It looks to me like it’s bitcoin with leverage (not sure I’m using the right term here ?!).

    But I’m really not an expert at all and I am fully bullish now so ..

    1. I understand it to show rate of change of price. What I tend to use if for is to look for times when momentum is increasing at same time as price falling, or vice versa as a hint that reversal might be on the cards.

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