Crypto Watchlist: Brief Setups on LTC & BNB?

The crypto markets are in bounce mode, however is that this actually a return to the longer-term uptrends?

We’ll see, however for individuals who are skeptical, listed here are a few fast technical setups in Litecoin (LTC) and Binance Coin (BNB) to take a look at for potential short-term performs in longer-term downtrends.

LTC/USD: 4-Hour

LTC/USD 4-Hour Crypto Chart
LTC/USD 4-Hour Crypto Chart

Litecoin (LTC) is a good crypto asset to take a look at when seeking to play broad market sentiment, as a consequence of the truth that there actually aren’t blockchain fundamentals or narratives to actually be involved with. It’s only a easy layer-1 blockchain system just like bitcoin (it’s really a fork of Bitcoin’s codebase); just a bit bit quicker and with a bigger token provide. So, worth motion typically comply with’s broad market sentiment and bitcoin’s worth motion, that means, which ever method the market goes, LTC is usually tagging alongside.

And that’s been case for LTC/USD over the previous few months, falling massive time with the remainder of the crypto house after hitting the $300 deal with again in November. And should you consider that the ache ain’t over but for the bulls, then this week’s bounce from $121 to $142 may very well be your likelihood to get bearish on crypto on the whole.

In the meanwhile it seems to be like a possible resistance space is forming across the 38% Fibonacci space and damaged earlier help space across the $144 deal with. We’ve additionally obtained stochastic signaling probably overbought situations, and with all put collectively, this can be sufficient to entice technical bears to leap again in for a short-term swing play within the longer-term downtrend.

BNB/USD: 4-Hour

BNB/USD 4-Hour Crypto Chart
BNB/USD 4-Hour Crypto Chart

Binance Coin (BNB) additionally matches the invoice and is definitely a market we scoped out back in early December as one to potentially play if crypto markets continued to slip. We referred to as it a useless cat bounce, and identified a possible situation the place a draw back break of a rising wedge could draw in additional sellers.

That appears to be the way it all performed out as crypto markets did proceed to bitter in December as hawkish central financial institution rhetoric did ramp up. BNB/USD fell from $570 to $500, the place it discovered momentary help earlier than breaking decrease to almost hit the $400 deal with earlier than this week’s bounce.

Once more, should you’re nonetheless bearish on crypto, BNB/USD is market to take a look at for a possible short-term swing transfer. Not solely are we seeing technical arguments of potential resistance/reversal forming (e.g., stochastic overbought, momentum slowdown at earlier damaged help/main psychological degree), however fundamentally, Binance chain appears to be shedding floor in total-value-locked (TVL) to different layer-1 chains like Terra, Avalanche and Solana.

Binance continues to be a monster chain with virtually $20B in TVL, however odds are that it gained’t entice capital prefer it did in early 2021 with these new youngsters taking their items of the pie, elevating the percentages that this downtrend in BNB worth could proceed.

However what do you all assume? Is LTC or BNB purchase or promote? Let me know within the feedback part beneath!

This content material is strictly for informational functions solely and doesn’t represent as funding recommendation. Buying and selling any monetary market includes threat. Please learn our Risk Disclosure to be sure to perceive the dangers concerned.

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