Bitcoin Gains, Litecoin Ends Downtrend

Both bitcoin and litecoin made solid gains during the past week. Bitcoin is up by $505 dollars or 8% since last Tuesday while LTC is higher by $8.96 dollars or close to 9 percent.

Bitcoin Gains 8 Percent

Big brother bitcoin is up by over 8 percent. However, these gains weren’t enough to end the downtrend on the daily chart. For that to happen we need to see a breakout above $6,840 dollars per coin. A decisive break beyond $7,046 would start a new BTC rally.

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Resistance higher up can be found at the $7,775 swing high. This is followed by more levels at $8,590 and 8,880 dollars. The $10,000 round figure is another notable resistance level. A breakout above it could lead to an extended move up.

Below there’s weak support at this year’s low of $5,766 dollars. A stronger level is the $5,000 round figure. Besides being a major round figure, $5,000 was also a notable swing high last year. It’s unlikely that this support will be broken on the first try. However when and if $5,000 breaks the losses could intensify. There’s no change in trend on the longer-term charts either. The weekly charts are still in a downtrend while the monthlies are keeping the bullish bias.

Litecoin Ends Downtrend

The near 24% jump from lows was enough to push LTC/USD out of the downtrend. The altcoin is now back in range on the daily charts.

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A breakdown below the 2018 low at $72.50 dollars would re-start the downtrend. Below this area of support, the next major level is around $50 dollars. Here we have the 2013 high at $48.40 dollars coupled with the $50 round figure. A clean break below $48.40 could lead to more losses below.

Above there’s some resistance around $90 dollars. But the bulls need a breakout above $102.75 to start a new rally in prices. Not far from here, the $105 – $109 area could be tough resistance. This was the low in 2018 for over five months until the June drop forced prices lower. A break of this area could lead to more gains.

Higher up there’s more resistance at $128.80 dollars, followed by the round figures at $140 and $150 dollars. Higher still we have the $152.80 swing high as another notable resistance. On the longer-term charts, LTC is in the same boat as BTC. The weekly charts are bearish while the monthlies are still clinging on to the bullish bias.

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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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