Bitcoin Bounces Back, Still in Downtrend

FXOpen

Bitcoin prices have bounced back sharply from the $2,970 lows and are currently quoted at $3,974 dollars. Litecoin followed a similar pattern, hitting a low of $32.35 and is now at $54.48 dollars per coin.

Bitcoin Bounces From Lows

Bitcoin prices bounced hard from the $2,970 lows to a hit a high of $4,103 earlier today. We have since dropped a bit after renewed bad news from China.

btcusddaily-sep19-copy

According to a Wall Street Journal article, China will go much further than just banning exchanges in the country. Plans may include banning OTC (over the counter) trades as well as restricting the access to foreign exchanges, by putting them behind the great firewall of China. There are fears that even bitcoin mining could be affected, if the country blocks all bitcoin transactions, like some have speculated. With 65% of BTC mining in China, this could have a severe impact on the bitcoin network in the short-term. As the WSJ says:

”Until now, Chinese miners considered themselves immune from Beijing’s evolving stance on bitcoin trading. One entrepreneur said miners are now worried about authorities moving to limit their operations. Using VPNs as a workaround will be difficult, he said, referring to virtual private networks that allow users to circumvent China’s so-called Great Firewall.”

This is still a developing story and no new actions have been taken by the Chinese government since the exchange ban. It remains to be seen just how far they will go.

Technically BTC/USD remains in a downtrend on the daily charts. To end it, the bulls will have to push us above the $4,378 swing high. A new rally, however, requires a break of the all-time high at $4,960 dollars. On the weekly and monthly charts, bitcoin remains in a bull market.

Litecoin in Downtrend as Well

With the break below the $60.55 swing low, Litecoin ended the rally. And with the break of the important $50 round figure, it joined big brother in a downtrend. Prices traded as low as $32.35 on FXOpen before a market bottom was found. We are currently trading at $54.48 dollars.

ltcusddaily-sep19-copy

Despite the sizeable bounce, LTC/USD remains in a downtrend on the daily charts. A breakout above the $72.36 swing high is needed to end it. A move beyond the all-time high at $93.60 dollars would restart the rally. The large drop pushed Litecoin in a range on the weekly charts. The monthly is still looking bullish.

Open a forex btc Crypto account with FXOpen.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Cryptocurrencies

BTC/USD Analysis: Bears Have Become More Active Near the $70,000 Level Today Is an Ethereum Update. ETH/USD Is Above $4,000 After Updating the Historical High, the Price of Bitcoin Collapsed by 14% BTC/USD Price Exceeds $60,000 Per Coin Bitcoin Price Risks Not Staying above $50k

Latest articles

Forex Analysis

US Dollar Shows Record Weekly Gain Since Mid-January

The US dollar strengthened on Friday ahead of a series of highly anticipated central bank meetings next week, including the US Federal Reserve. The dollar rose 1.3% for the week, its biggest gain since mid-January, after a mixed batch

Shares

Tesla Stock Hits a Low Point as Musk Sues Openai - Is This Year a Total Write-Off?

Occasionally during the course of industrial progress, there is a maverick; a voice that is known for continual disruption and maintaining a high-profile position whilst engaging in such disruption. The figure of this decade is Elon Musk, a self-starter whose

Trader’s Tools

Analytical Forecasts: How Much AAPL Stock May Cost in the Next 10 Years

In today’s tech landscape, Apple Inc. has consistently been at the forefront, shaping the future with its innovative products and services. As investors and enthusiasts alike ponder the future value of Apple stock, particularly looking ahead to the next

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.