Bitcoin Hits Monthly Lows Before Stabilizing

Bitcoin prices hit new monthly lows of $5,883 dollars before stabilizing somewhat. Litecoin hit a new 2018 low yesterday at $49.10 dollars before rallying higher. It’s quoted at $54 dollars right now.

Bitcoin Hits Monthly Lows

As noted above BTC/USD hit new lows for this month before stabilizing. We are trading at $6,330 at the moment, not far from the $6,488 dollars quoted last week.

In that article we said that the $5,700 to $6,000 area will provide some support. This is exactly where the current downmove decided to stall. A decisive clearing of this area should open the door to the $5,000 round figure. The latest bounce seems like a dead-cat. The lack of a fundamental driver coupled with the relatively small gains shouldn’t give much hope for an extended move.

The bulls need a breakout above the $7,155 swing high to end the downtrend. Other potential resistance levels that can be seen on the chart above are $6,622, $6,840 and $7,212 dollars per coin. A move beyond the two-month high at $8,486 dollars could start a new rally in prices. On the longer-term charts there’s no change since last week. The weekly chart is bearish while the monthly is still keeping a slight bullish bias.

Litecoin Bounces at 2013 Top

Litecoin prices almost hit the 2013 top yesterday. We traded as low as $49.10, missing the $48.40 high by only $0.7 dollars or 1.4 percent. We are currently quoted bit higher at $54.88 dollars.

The bounce for LTC/USD around $50 dollars was expected. In our last article we pinned this area as strong support. Like we said back then, here we have the 2013 high at $48.40 dollars coupled with the $50 round figure. That 2013 high wasn’t broken until July of 2017. Because resistance turns to support, you would expect some pushback when this level is tested. A clean break below $48.40 could lead to extended losses.

The downtrend will remain in place until we clear the $76.64 swing high. A breakout above $90.40 dollars is needed for a new rally. More resistance in between these two levels can be seen at $72.50 and $85 dollars. On the longer-term charts, the picture for LTC is the same as bitcoin, bearish on the weeklies but slightly bullish on the monthly charts.

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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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