The bitcoin rally ended during the weekend as prices broke the $423 swing low. Meanwhile its little brother Litecoin stayed range-bound for another week.
Bitcoin Rally Ends
The (almost) month-long BTC rally looks to be finally winding down after we broke below $423 on Saturday. In our last article on Thursday we noted this level as a potential game changer. After the bears broke this figure we saw BTC/USD fall all the way to $401.15 dollars per coin.
We have since bounced back somewhat with bitcoin moving up to $429.46 dollars at the moment. Despite the gains, it will take a lot more to restart the rally. For that to happen, the bulls may have to take out prices all the way back to $460 dollars. Higher up the first major resistance can be found at the round $500 figure. This is close to where the previous November rally topped out at $504 dollars on most BTC exchanges.
On the lower end, a decisive break of the $400 round figure could start a new downtrend for bitcoin. But caution is advised in these circumstances. After large rallies or downtrends, the market usually needs some time to digest the new reality. Prices rarely switch from one state to the other, i.e. uptrend to downtrend, without some consolidation in between.
Notable support levels below $400 are the $379 swing high, followed by the $350 round figure. Weaker levels below can be found near $340 and $310 dollars per coin.
Litecoin Still Range-bound
After Litecoin ended its rally last week, we’ve continued to trade range-bound. We are currently quoted at $3.49 dollars, in the middle of last week’s range. Litecoin traded as high as $3.64 dollars and as low as $3.35 dollars during the past seven days.
No important levels have been breached yet. A potential rally starting point is the $3.82 swing high. A decisive breakout above this level may trigger a new uptrend. Higher up resistance can be found at $4.00 and $4.50 dollars, followed by the November high at $4.85 dollars.
On the downside we have some support at the $3.35 dollars figure. But the more important level is near $3.26 dollars per coin. A clean breakdown below here could start a new LTC downtrend. The first support below here can be found at the round $3 dollars, followed by the $2.88 swing low. Below here we have more support at $2.70 and $2.50 dollars per coin. We end the notable LTC levels on the downside with the January swing high at $2.40 dollars and the $2 round figure.