Bitcoin, Litecoin Close in on Lows

Both Bitcoin and Litecoin are closing in on their interim lows. Big Brother is trading 3 percent above the $234 swing low, while LTC is quoted just 0.40 cents above the $1.60 mark.

Bitcoin Nearing Support

Bitcoin prices are nearing the interim support level at $234 after yesterday’s losses. We are currently quoted at $241.71 per coin. The $234 support is marked with yellow on the chart below. The move appears to be largely technical as there have been no important news that we can blame for the recent sell-off.

BTCUSDDaily-apr9

A breakdown below $234 could open the way for more losses. While the closest support below here can be found at $225, due to the proximity of $234, a better candidate for support is $208. In fact, the whole area between $200 and $208 should be treated as potential support. Lower still, notable levels include the $192 swing low as well as $162 per coin.

While a move higher doesn’t seem likely at this point, we have to be prepared for every scenario due to bitcoin’s range-bound movement during the past two weeks. On the upside, BTC will need to breakout above $300 dollars to spark a rally . A move above this figure could lead to gains toward the December 23rd swing high at $334. Higher up, two more resistance levels can be found at $350 and $380.

Litecoin Pushing on $1.60

Litecoin is continuing to make make small steps toward the $1.60 mark. While the altcoin broke the low of its range at $1.66 last week, it was unable to clear the level and head lower. We are currently quoted just above the $1.60 mark at $1.6040.

LTCUSDDaily-apr9

More losses are likely going forward. The constant pressure on $1.60 as well as the downward momentum after the breakdown from the range should lead to more red for LTC/USD. Important support levels below $1.60 include $1.50 and $1.25. Lower still, the $1 parity level stopped the previous decline in prices and is likely to act as major support (if we trade that low). To end the current downtrend, Litecoin will need to climb above $1.80. But to stage a sustainable rally, the bar is set much higher at  $2.05 per coin. As usual, whenever trading altcoins keep an eye on bitcoin. Note that during the past few weeks altcoins have followed BTC lower, falling by a comparable (or higher) percentage. But during the bitcoin rallies, altcoins underperformed, moving up by a much smaller amount.

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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