Both bitcoin and litecoin have switched into downtrends today after breaking key support levels. News from South Korea and China keeps weighing on market sentiment.
Bitcoin Switches to Downtrend
After a long time bitcoin is finally in a downtrend on the daily charts. The last time this happened was during September of 2017 and the move lower lasted two weeks with prices eventually bottoming out near the $3,000 mark.
One BTC is selling for $11,550 dollars right now. Resistance on the way up can be found around $12,600 – $12,700 dollars per coin, followed by the $15,000 round figure. A breakout above the $17,231 swing high would switch the current trend from down to up.
On the way down we have support at the $10,680 swing low, followed by the $10,000 round figure. A clearing of this psychological support area could intensify the losses for bitcoin. On the weekly and monthly charts BTC remains in an uptrend. However keep in mind that changing these two trends will require many weeks/months.
More bad news for bitcoin. China is looking to expand the scope of its September crypto exchange ban. Authorities may seek to “end” all forms of centralized trading for Bitcoin and altcoins. The increasingly crypto-hostile government seems to be putting pressure on bitcoin miners as well. According to the FT, a combination of measures will be used to ‘guide’ crypto miners toward an exit.
South Korea may clamp down on crypto trading as well. Finance Minister Kim Dong-yeon said earlier today that banning trading in digital currencies was “a live option.” The decision is subject to a thorough government review. This triggered a sharp drop in the price of BTC yet again. After China’s fiat-to-crypto exchange ban last year, South Korea now accounts for the majority of bitcoin trading volume.
Litecoin Joins Big Brother
Litecoin joined BTC in a downtrend today. Prices traded as low as $175.87 dollars on FXOpen before stabilizing somewhat. We are currently quoted at $197 dollars per coin.
The bulls need a breakout above $305.82 swing high to switch the trend from down to up. Support on the way down can be found at the $162.22 swing low followed by the $150 and $100 round figures. Similarly to BTC/USD, litecoin remains in a uptrend on the weekly and monthly charts.
Start Bitcoin trading with FXOpen