Bitcoin Struggles to Continue Gains

After the massive $1,200 candle five days ago, bitcoin is struggling to continue the gains. Litecoin is trading mostly range-bound as well.

No Follow-through for Bitcoin

Bitcoin prices are having a hard time making headway during the past five days. We saw a new high of $8,425 on Sunday but this was quickly sold into by the bears. We are currently quoted at $8,097 dollars, only $10 above the highs made during the huge 40 minute candle, read more HERE.

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Technically little has changed since that article. Bitcoin is still in a range on the daily charts. To end it we need a breakout above $8,425 dollars to the upside. As usual we’re looking for a decisive breakout here not just a brief and shallow spike higher. Higher up there’s more resistance around the $9,000 round figure and the $9,165 swing high. Further up we have the $10,000 round figure, an important psychological barrier. This is followed by more resistance at $10,680, $11,000 and $11,769 dollars.

On the lower end the bears need a break of the support around the $6,420 swing low. A clearing of this strong support area would open the way for a break of this year’s low at $5,980 dollars per coin. On the longer-term weekly charts BTC/USD is range-bound as well. The monthly charts are still looking bullish.

Litecoin Ends Downtrend

Litecoin broke the important resistance at $135.52 today and hit a high of $140.12. Thus the altcoin managed to end the downtrend on the daily charts. We are quoted at $136.73 dollars right now, up by $8 or 6.25 percent.

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A new uptrend requires a breakout above $140.12 dollars. Resistance higher up can be found at the $150 and $160 round figures, followed by the swing highs at $169 and $174.22 dollars. A breakout above here could open the door to the $200 round figure.

On the lower end there’s strong support around the $108.44 swing low. But due to the proximity some may choose to wait for a break of the $105.55 swing low as well. This is the year’s low for LTC/USD. The $100 round figure may also act as support to falling prices but it probably won’t be as hard to crack as the two above mentioned levels. On the longer-term weekly and monthly charts Litecoin is still keeping the bullish bias.

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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