In the past week both bitcoin and litecoin have ended their uptrend. Bitcoin bears barreled past the important $410 swing low, pushing prices to a low of $393.99 before a rebound occured. Litecoin fell to a low of $3.125 before stabilizing somewhat.
Bitcoin Breaks $410 Dollars
Bitcoin broke below the important $410 swing low last Saturday. In the selling that followed, a low close to $394 dollars per coin was hit. We have since rebounded somewhat with prices trading around $410 dollars at the moment.
Despite the strong recovery from the lows, this doesn’t classify as a new uptrend. For this, the bulls will have to push BTC/USD above the $450 round figure. Higher up more resistance can be found in the $460/$470 area. A clearing of this resistance area could propel bitcoin toward the $500 round figure. This was the highest high for BTC on most exchanges last year. It will be a strong resistance to any upward momentum.
On the lower end, the $400 round figure will present only a minor problem for the bears. This level has been broken several times in the recent past so don’t expect it to present a meaningful challenge. However a decisive breakdown below the Saturday lows at $394 may spark a new downtrend. To start a new downmove, we’re looking for a decisive break of this swing low, not just a brief and shallow spike below. Potential support levels below here include $374 and $350 dollars per coin.
Litecoin Breaks Uptrend as Well
Prompted by bitcoin, the litecoin uptrend broke last Saturday as well. Prices fell below the $3.25 dollars level noted in our previous LTC article. From here the selling intensified until LTC/USD bottomed out at $3.125 dollars. We are currently quoted at $3.20 dollars per coin.
With the uptrend now over, prices are back into range-bound territory. The two key levels are now at $3.12 on the downside and $3.50 on the upside. A decisive break of either of these price extremes should exacerbate the gains/losses. Below $3.12 dollars we have support at the round $3 level, followed by a strong support area around $2.90 dollars. A clearing of this area may lead to more LTC losses towards $2.70 and even $2.50 dollars per coin.
On the upside, above $3.50 we have resistance at the $3.65 dollars swing high, followed by $3.82 dollars. Then we have the two round figures at $4.00 and $4.50 dollars. At $4.85 dollars we find the highest point for LTC/USD during bitcoin’s rally last November, followed by another round figure at $5 dollars. Higher still we find last year’s high for litecoin at $8.64 dollars per coin.