Bitcoin is trading little changed compared to last Tuesday. Prices are down by $7 dollars or just 1.1 percent. It’s little brother Litecoin is down by a larger 2 percent. As usual let’s cover big brother first and we’ll come back to LTC later in the article.
Bitcoin Little Changed in Volatile Week
Bitcoin is trading little changed during the past seven days but not for lack of trying. The total weekly range was a respectable $24 dollars, or 8.7 percent. The bears and the bulls can’t make up their mind as we’re entering the 27th day of being stuck in range. The bounds of this area can be found at $596 to the upside and $556 to the downside.
As usual with these levels, some type of overshoot is possible so better levels to take a look at are $600 and $550 dollars. The added benefit of these figures is that they’re round levels, natural areas for support/resistance. A breakdown below $550 could renew the stalled downward momentum. Below here we find support at the round $500 figure. But a stronger support level is the breakout level for the recent rally around $460-$469 per coin. This is also where prices bottomed out in panic after the Bitfinex hack. A break below here could lead to more losses.
A break above the $600 figure would end the current weak downtrend and simultaneously start a new BTC rally. Resistance levels above here can be found at the next round figure of $650 mark followed by $670, $687 and $700 dollars per coin. While the short-term trend is bearish, both the medium-term and the long-term trends remain to the upside.
Litecoin Bounces at $4 Dollars
Alternative cryptocurrency Litecoin bounced off the round $4 dollar level last Tuesday. In our article one week ago we identified this figure as a potential trend starter. While the bounce confirms this level as valid resistance, the short-term trend remains neutral, and so do the medium-term and long-term trends.
A decisive break above the $4 dollars level could start a new uptrend. Resistance levels above here can be found at the $4.07 swing high, followed by $4.15. Higher up we have a resistance area from $4.43 to $4.52 per coin. A clearing of this area could intensify the gains.
On the lower end the bears need a break of the $3.50 level to restart the downtrend. Below here we have support at the $3.22 spike lows followed by the $3 round figure. Further down we find this year’s low at $2.89 and lower still we have the twelve-month low near $2.50 dollars per coin.