Bitcoin Downtrend Ends, Prices Closing in on $250

The downtrend for bitcoin is technically over, after we rallied over $50 dollars from the lows reached on August 25th. Prices are now closing in on the important $250 mark again. Meanwhile its little brother Litecoin is currently fighting with an important resistance level.

Bitcoin Closing in on $250 Again

Bitcoin prices are again flirting with the $250 dollars level. This important figure was the starting point for the rally at the end of June. On the way down, a breakdown below $250 triggered a crash of $32 dollars. With BTC/USD coming up to this figure again, it’s likely that this important level will act as resistance again.

BTCUSDDaily-sep8

A decisive break above $250 would technically start a new BTC uptrend. But caution is advised because we just ended the previous downtrend. Markets usually don’t switch from downtrend to uptrend right away. This doesn’t mean that a rally wont happen but it’s the less likely scenario compared to say, more consolidation below $250. Higher up, the swing high at $269.23 is another important resistance.

On the lower end, the top of the range we just broke out from at $230 should provide some support to falling prices. Below here the former double bottom at $210 dollars is a notable support level. Lower still, we find the August 25th swing low at $192. A decisive break below this level would re-start the BTC downtrend.

Litecoin Fighting with Resistance Area

Alternative cryptocurrency Litecoin has ended its downtrend as well. The crypto is fighting with an important resistance area after a significant up-move. Prices have rallied 54 cents or just below 22 percent since the September 3rd low at $2.5299. We are currently quoted at $3.06 dollars per coin, right in the middle between two important levels, as can be seen on the chart below.

LTCUSDDaily-sep8

Out of these two, the $3.18 figure is the more important level. It was a previous swing high (resistance), then it turned to support and held up prices during the second half of July and the first half of August. It should again act as resistance to rising prices. But a breakout above $3.18 may have limited follow-through because the threshold to start a sustainable LTC rally starts much higher at the $3.62 swing high.

On the lower end, weak support can be found at the round $3 dollars mark. Below here the August 25th swing low at $2.50 is an important support level, followed by more support close by at $2.40. This level marks two previous swing highs reached back in January of this year. A decisive break below $2.40 would restart the downtrend and open the door for more losses towards $2.05.

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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