Bitcoin Stable but Downtrend Remains

Bitcoin is trading little changed compared to our last update. We’re quoted at $11,186 right now, compared to $11,550 back then. Litecoin is trading at $177 dollars, down from $197 last week.

Bitcoin Stable in a Downtrend

Bitcoin prices have been volatile during the past seven days but ultimately ended up close to where they started. We are only down by $364 dollars since last Tuesday or around 3.1 percent. This is a very small percentage change for a crypto-currency.

btcusddaily-jan25-copy

On the chart above the most recent week is shown with a rectangle. Above current prices we find some resistance at $11,595, $12,629 and $12,992 dollars. But the bulls need a breakout above $14,559 dollars to end the current downtrend. A move beyond $17,231 could re-start the rally in BTC/USD.

Despite the recent stability, bitcoin remains in a downtrend. Support below can be found at $10,680, $10,000 and $9,211 dollars per coin. A move below here could intensify the losses. On the longer-term weekly and monthly charts BTC remains in an uptrend.

On the news front not much new for bitcoin. Today Goldman denied rumors that the Bank will get involved with market making in bitcoin futures. This throws more cold water on the hype around BTC futures, which largely didn’t live up to market expectations.

Litecoin Down by $20 Dollars

Unlike BTC which traded almost flat, LTC/USD dropped by $20 or close to 10 percent last week. One litecoin is selling for exactly $177 dollars right now, down from $197 dollars.

ltcusddaily-jan24-copy

Similarly to BTC/USD litecoin remains in a downtrend. To end it the bulls will have to push prices above $245 dollars per coin. A new rally requires a move above the swing high at $305 dollars. Support below can be found at the $162 dollars double bottom. A breakdown below here could lead to a retest of the $137 swing low. A move below it could lead to extended losses in LTC/USD.

Above current prices we have resistance at $194 and $200 dollars per coin, followed by $245 and $305 dollars like we said above. Higher up we have more resistance at the $347.50 swing high and the $350 round figure. And of course the all-time high at $370 dollars is another notable resistance level. On the longer-term weekly and monthly charts litecoin is still looking bullish. But like we said previously, if we are in the start of a large bear trend for crypto, these charts may take many weeks/months to finally turn.

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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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