Bitcoin Poised for More Losses

After Sunday’s break below $480, bitcoin has been pushed back on the defensive. For the past 3 days, BTC/USD has slowly been losing ground. Prices are currently knocking on the $470 level and look poised to break lower.

The first level of support for BTC stands at $450. Below here, the round $400 figure may provide some support. But the real battle that will determine bitcoin’s medium-term trend will likely take place in the $330 to $350 area. This was the stopping point for the August 18th flash crash. Lot of traders will place their pending bid orders here in anticipation of another selloff.

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On the high end, the $480 figure broken on Sunday may provide some resistance. But BTC will need to both climb and stay above $500 before we can safely call this latest down move over. Higher up, the $530 swing high may provide resistance to the bulls. And to top it all off, we have the $550 level, a triple bottom that held out bearish attacks for two and half months. This figure will likely turn into strong resistance on the way up.

Litecoin bounces off $4.66

Litecoin bounced off the $4.66 support mentioned in our previous article. Bitcoin’s silver is currently quoted at $4.84. If LTC manages to takeout $4.66, prices could quickly fall to the $4 round figure. Lower still, at $3.40 the August 18th swing low will provide some support. The notable support levels for Litecoin end with the yearly low at $3.05 reached back in June of this year.

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On the top end, LTC/USD will need to break $5 to reverse its fortunes. Higher up, the area around $6 per coin will provide resistance. This area starts with the August 27th swing high at $5.89 and ends with the August 21st swing high at $6.17.

Peercoin back to painting red

Peercoin is back to painting more red. After breaking the $0.80 level on Sunday, PPC/USD fell to a low of $0.755. Since then, the losses have intensified and PPC hit a low of $0.68 yesterday. The next level of support for the altcoin stands at the August 13th swing low of $0.626. But the real hurdle for the bears with be at the $0.565 low reached on August 18th.

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On the top end, Peercoin needs to climb back above $0.80 per coin to get some reprieve from the losses. A breakout above parity may lead to a short-term boost in prices.

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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