Bitcoin Pulled Around by Ether Troubles

Bitcoin Pulled Around by Ether Troubles

Bitcoin is being pulled around by Ether troubles again. During the past few days we’re seeing BTC/USD zig-zag up and down depending on what ETH does. Meanwhile Bitcoin’s little brother Litecoin continues the slow trend downward.

Bitcoin Pulled Around by Ether

Bitcoin is being pulled up/down by Ether. The strong inverse relationship between these two coins is back in full force. Every major Ether sell-off leads to some BTC gains while every large ETH rally drops Bitcoin prices somewhat. You can read more on why ETH volatility is off the charts HERE.

BTCUSDH4-26july

To break this deadlock, we will need to see Ether volatility decrease or Bitcoin break out. The two potentially critical points are $670 on the upside and $589 on the downside. On other BTC exchanges, these levels correspond to around $690 at the top end and $610 on the bottom. As we’ve written previously, prices can fluctuate substantially on different Bitcoin exchanges, so it’s always a good idea to check where the general market is trading.

Resistance levels above $670/$690 can be found at the $700 round figure followed by the $744 swing high and the $800 round figure. On the lower end below $589 we have a support at $540-$550 on FXOpen followed by another round figure at $500. The breakout point for the latest major rally at $460 per coin is a major level of support as well. The longer-run trends (weekly and monthly) remain bullish for Bitcoin.

Litecoin Losses Continue

Alternative cryptocurrency Litecoin is still clocking losses. The coin is currently trading at $3.89, down by 18 cents or 4.4 percent since last Tuesday. Prices traded as high as $4.12 during the past seven days but this was not enough to clear the important resistance at $4.16 per coin. This level is still the key figure to watch on the upside. A breakout above here would end the current downtrend.

LTCUSDH4-july26

A new uptrend requires a break of $4.40 as well. Resistance levels beyond here are at $4.50-$4.52 per coin followed by the November spike high of $4.85 and the round figures at $5 and $5.50. This year’s high at $5.86 is another potential resistance.

On the lower end, support can be found at $3.78 followed by a support area from $3.50 to $3.61. A clearing of this area could lead to more losses toward $3.30 per coin. The weekly trend for LTC/USD is up while the monthly trend is still neutral.

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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