Bitcoin Down 1.5%, Litecoin Rally Ends

Bitcoin is down by 1.5 percent compared to one week ago. It’s little brother Litecoin is down by a much larger 14.9 percent and has finally ended the rally.

Bitcoin Down $27 Dollars

Bitcoin is trading lower by $27 dollars compared to last Tuesday. One coin is selling for $1,664 dollars on Fxopen right now.

btcusdh4-may16-copy

On the chart above we can see that prices have largely remained in a range during the past seven days. However, volatility was high. During this timeframe, a high of $1,799 was hit as well as a low of $1,583. While we’re only down by 1.5 percent since our previous article, the percentage swing high to low was 13%.

The trend remains up and to end it the bears will have to push prices below $1,420 on Fxopen. A new downtrend requires a move below $1,268 dollars per coin. If you’re not already in a position, entering right now is not advised. The high volatility experienced during the past week is set to continue. Any positions entered at this stage have to be sized small, thereby greatly reducing the potential return.

Below current prices, the first cluster of support levels can be found at $1,583, $1,591 and $1,600 dollars. A clearing of this support area could extend the move downward toward the $1,500 round figure and possibly even to $1,300 dollars per coin. On the long-term charts (weekly and monthly) BTC/USD remains in rally mode.

Litecoin Rally Ends

After two months and experiencing a nearly nine-fold increase in prices the LTC rally is finally over. Prices peaked at $36.25 on May 10th and it’s been red ever since. Earlier today a low of $20.88 was hit, then Litecoin bounced a bit and is currently quoted at $22.96 dollars.

ltcusdh4-may16-copy

We’re now in neutral mode on the short-term (daily) charts. A new downtrend requires a break below the $13.33 swing low while a new uptrend needs a breakout above the three-year high at $36.25 dollars. Support levels can be found at $20.88 (weak) followed by the $20 round figure and the previous resistance now turned support area around $15.75-$16.00. A clearing of this area could lead to more LTC losses

Above current prices we have weak resistance at the $25 level, followed by the $29.30 swing high and the $30 round figure. This month’s high at $36.25 should act as strong resistance to rising prices. On the longer-term charts (both weekly and monthly) Litecoin is still bullish.

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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