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

Litecoin (LTC) is a good crypto asset to take a look at when seeking to play broad market sentiment, resulting from the truth that there actually aren’t blockchain fundamentals or narratives to essentially be involved with. It’s only a easy layer-1 blockchain system much like bitcoin (it’s truly a fork of Bitcoin’s codebase); just a bit bit sooner and with a bigger token provide. So, worth motion typically observe’s broad market sentiment and bitcoin’s worth motion, which means, which ever means the market goes, LTC is mostly 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 in the event you consider that the ache ain’t over but for the bulls, then this week’s bounce from $121 to $142 could possibly be your likelihood to get bearish on crypto on the whole.

In the intervening time it seems 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 doubtlessly overbought circumstances, 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 suits the invoice and is definitely a market we scoped out again in early December as one to doubtlessly play if crypto markets continued to slide. We referred to as it a lifeless cat bounce, and identified a possible situation the place a draw back break of a rising wedge might 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 non permanent help earlier than breaking decrease to just about hit the $400 deal with earlier than this week’s bounce.

Once more, in the event 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 stage), however basically, 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 nearly $20B in TVL, however odds are that it gained’t appeal to capital prefer it did in early 2021 with these new children taking their items of the pie, elevating the percentages that this downtrend in BNB worth might proceed.

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

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