Bitcoin Bounces From Lows

Bitcoin fell to new lows last week as the downtrend continues. Prices dropped to $6,420 dollars per coin before a temporary bottom was found. On LTC/USD a low of $108.44 was hit before prices recovered somewhat.

Bitcoin Bounces From Lows

Bitcoin is quoted at $7,378 dollars right now, a gain of 15 percent from the lows. However, this bounce is still very much in the realm of ‘dead cat’, as counting from the start of March bitcoin is down by 29 percent.

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To end the current downtrend on the daily charts BTC/USD needs to break the $9,018 swing high. A new uptrend may commence if we decisively break the $9,165 high. Higher up there’s more resistance at the $9,887 swing high followed by the $10,000 round figure. A breakout above here may accelerate the gains. But with BTC at $7,378 we are still far from that scenario.

Below current prices, there’s support at the latest swing low of $6,420 dollars. This is followed by this year’s low at $5,980 dollars. A breakdown below this level may lead to more losses. Further down the $5,000 round figure is another notable support. On the weekly charts, BTC/USD is still range-bound but the monthlies are keeping the bullish bias.

Litecoin Back at $130 Dollars

Litecoin is back above the $130 dollars level after a strong bounce. On Sunday a low of $108.44 was hit but from here prices rallied by almost 25 percent to a high of $135.52 dollars. We are currently trading slightly below this high at $131.30 dollars.

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Below there’s strong support in the $105.55 to $108.44 double bottom area. While not a perfect double bottom, on the daily charts this is ‘good enough’. Three percent difference doesn’t mean much here. However, it’s not clear if this bounce will turn into a real trend reversal as we only had one day of strong gains for LTC. For now, Litecoin remains in a downtrend. To end it the bulls need to push us above $169 dollars per coin.  A new rally requires a break above the $174.22 swing high as well.

A breakdown below the $105.55 swing low could lead to more losses. The downtrend could accelerate if the move continues below the $100 round figure. On the longer-term weekly and monthly charts, LTC/USD is still looking bullish.

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Petar Kotevski

Petar is a forex trader and writer with 9 years of experience in financial markets. He has been following bitcoin since 2010. A year ago, as the BTC market matured, he started getting more involved by writing articles on bitcoin and other alternative currencies.

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