Bitcoin, Litecoin Continue Downtrends

After a week-long pause, both Bitcoin and Litecoin continue their respective downtrends. Big Brother is down by $19 or 3.3 percent while LTC is trading lower by 20 cents or 5.3 percent. As usual, we’ll go over Bitcoin first and go back to Litecoin later on.

Bitcoin Down by $19

After seven days stuck in a tight range, BTC/USD finally broke down on Sunday, trading as low as $556.66 before rebounding. We are currently quoted slightly higher at $564 per coin.

BTCUSDDaily-aug16

The downtrend is still intact. To end it, the bulls will have to make a decisive break of the $595 swing high. For extra conviction, a break of $600 would help. On the lower end, a weak support can be found in the $556 area, closely followed by the round $500 figure. But a much stronger level is the breakout level for the most recent rally around $460-$469 per coin. This is where we bottomed out in the mayhem right after the Bitfinex hack. A break below here could intensify the losses.

On the other end, a breakout above the $650 mark is needed for a new rally. Higher up more resistance can be found at $670, $687 and $700 per coin. While the short-term trend is now down, both the medium-term and long-term trends for BTC/USD are to the upside.

Litecoin Lower by 5 Percent

Alternative crypto currency Litecoin is trading lower by 5 percent compared to last week, quoted at $3.54 right now. We are now entering the 3rd month since this LTC downtrend has started. While the gains for the bears haven’t been spectacular, they have been consistent. To end this downmove, the bulls will have to push prices above the $3.795 swing high. A new rally requires a break of $4.08 as well.

LTCUSDH4-aug16

On the lower end, we are currently inside the support area noted last week ($3.50 to $3.61). A break below here may extend the move to the next level area of support from $3.22 to $3.30 per coin. Further down we find more support at the $3 round figure followed by this year’s low at $2.89 and the twelve-month low near $2.50 per coin. While the short-term trend for LTC/USD is down, both the medium- and the long-term trends are undecided.

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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