Best cryptocurrency predictions for Bitcoin and Litecoin: Goldman Sachs purchases Poloniex

• Bitcoin started the European session demanding a technical correction. BTC/USD has broken the bullish formation, although there is still room for the confirmation.
• Goldman Sachs purchases Poloniex through its Circle start-up by $400 mil.

Goldman Sachs confirms the business potential in the Crypto sphere

Widely known for its capacity to smell money anywhere, Goldman Sachs tends to be a pioneer in the implementation of strategies and technologies that yield high capital returns. They have been late in committing to Cryptocurrencies, though, as the decentralization that provides the Blockchain has made big banks unnecessary institutions. The confusing legal framework in the Crypto world has not helped the banks' case either.

Anyway, Goldman Sachs has decided to buy Poloniex, one of the main trading platforms, for $400 million, a big investment. It is an encouraging sign that the big market players get into the Crypto business.

Change of scenario if Bitcoin keeps the current price level

Bitcoin has awakened in Europe trading higher, following the bullish action it started yesterday at the start of the American session. In yesterday's analysis, we saw as likely a retracement to the $8500 area to complete the head-and-shoulders pattern, but price action has rejected it and opened up a new scenario that, without totally discarding the one presented yesterday, might take Bitcoin up to higher levels.

The technical picture will be more clear in the next few hours, with a close above $10618 being the key level to confirm a bullish picture. On the other hand, closing below that mark would take BTC/USD back to yesterday's outlook, with decent chances of a retracement down to $8500.

BTC/USD 4H chart

MACD in the Bitcoin 4-hour chart is crossed up, although in a complicated zone, with the average above 0 but the trendline below there. The inclination and angle give higher chances of a bullish continuity.

Directional Movement Index confirms the bullish momentum, with the D+ is situated clearly above the sellers, and most importantly, above the ADX. There's potential for more rises.

On the upside, there is an important resistance at $11450, followed by $11780. A bigger resistance is located at $12500, and if that one gets broken, the bullish profile would increase considerably.

On the other hand, the first level to track is the current 4-hour candle low at $10618, followed by $10216. Below there, we would go back to the scenario schemed yesterday, looking for $9273.

Litecoin slows down but keeps its bullish setup

Litecoin is still trading in the $220 area, staying within a range where it has been stuck several days. The technical setup is still positive as we can see in the chart analysis.

We have read some comments tagging our $700 projection for Litecoin from risky to even harsher adjectives. Actually, getting into a deeper analysis, if Litecoin goes full bullish, the most probable target would be even higher, at $821, as the technical projections that now rule LTC/USD price action indicate.

LTC/USD 4h chart

MACD in the Litecoin 4-hour chart is still crossed up and still above the 0 line. The profile is quite flat, with a slight bullish profile. This gives a certain edge to the bulls, but bearish tests at the $207 and $198 areas are likely in the short-term.

Directional Movement Index is still in a very similar setup, with a slight advantage to the buyers, but both groups above an ADX that currently trades at lows after several sessions in a very tight range.

On the upside, there is a cluster of resistance levels in a very narrow range of prices, first at $234, followed by $240, $248 and $260.

Below there, the first support is at $207, followed by $197.50. Way down, the $167.22 level is a crucial support for the bulls to hold on to avoid losing any bullish hopes.