Bitcoin has resumed the downward trend after a short lasting ranging period last week. After spending around 10 days inside a tight 10 percent congestion between $480 and $530, BTC finally managed to break below the lower bound on Sunday. The other cryptocurrencies followed big brother bitcoin lower. Litecoin fell below the $5 mark, Peercoin broke $0.80 and Namecoin is currently testing parity.
Bitcoin breaks $480, $450 eyed
Bitcoin broke the $480 figure on Sunday. After a short retest of the level yesterday, BTC/USD is now back to trading lower. One bitcoin is currently quoted at $474.99. The next support for BTC can be found at $450. The $400 round figure should also provide some support. Lower still, $330 to $350 area will be significant support for bitcoin.
This is where the latest down move halted two weeks ago. In addition, after the August 18th flash crash to $334, a lot of traders will probably have bid orders in place here, looking to buy up ‘’cheap’’ coins. On the top end, the $480 figure we just broke will provide some resistance to prices going higher. But until BTC/USD can climb above the round $500 level, any gains in bitcoin will be limited.
Litecoin testing $4.66
After diving below the $5 mark two days ago, Litecoin is now testing the $4.66 figure. This level marks the swing low reached on August 23rd and may provide small support for LTC. It’s hard to predict where prices might go on a break lower. The first visible support after $4.66 is at $3.40, the lowest low reached on August 18th. But since in percentage terms this is over 27% below $4.66, prices may take a breather sooner, possibly at the round $4 mark. On the top end, LTC/USD needs to both break and stay above $5 to put an end to the recent losses.
Losses continue for Peercoin as $0.80 is broken
Losses are also continuing for altcoin Peercoin. After breaking the $0.80 support, PPC/USD fell over 5 percent to a low of $0.75. Now this figure is being retested. Peercoin still looks susceptible to more losses. The first visible support level stands at $0.626, followed by the August 18th swing low at $0.565. To reverse the losses, PPC will first need to go back above the $0.80 mark, although a break above parity will likely be more convincing for the bulls.