Bitcoin Tests Important Support

The meltdown in crypto prices continues, with many of the top 20 altcoins hitting drawdowns of over 50 percent from the highs. Luckily the two coins we follow on Tuesdays have so far avoided this fate. Bitcoin is down by ‘only’ 21 percent from the highs while LTC/USD is down by just over 17 percent.

Bitcoin Bounces at Important Support

Bitcoin tested the important support at $2,250 today. By the looks of things, the first try was unsuccessful for the bears. Prices dipped to a low of $2,245 on FXOpen today and stayed there for a grand total of 1 minute before bouncing back above the $2,250 mark. Soon after we had a major rally of $139 dollars to hit a high of $2,384. We have since fallen back a bit to $2,331 dollars per coin.

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Bitcoin is not in a downtrend, not yet anyway. We look for a decisive breakout of important levels like $2,250, not shallow and brief spikes below like the one we had today. It remains to be seen if the bears make another attempt for the lows in the next few days.

For now, we are back in ‘wait and see’ mode. The levels to watch are $2,245 on the downside and $2,700 on the upside. A clean breakout beyond either of these price extremes could end the stalemate and start a new trend. This is the view on the daily charts. On the weekly and the monthlies, the bullish trend is still intact.

Litecoin Down but Uptrend Remains

Litecoin is down a bit since our last update. Back then LTC/USD was quoted right at the $50 mark. The next day it peaked to a high of $54 on FXOpen before falling back slowly to $44.69 right now.

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Despite the losses, no important levels have been breached yet. An end to the bullish trend requires a break below the $36.24 swing low, while a new downtrend could commence on a clean move below the $34.42 swing low.

On the upside, we have resistance around the $50 round figure. This is a previous multi-year high for LTC/USD. Although prices stayed above here last week for a few days, the level will likely continue to be relevant. Higher up the new all-time high at $54 dollars is another notable level. A breakout above here could intensify the gains.

On the lower end, we have support around the $36.24 and $34.42 swings, as noted above. Lower still we have more potential levels at $30 round figure followed by a strong support area around $26 dollars per coin. On the weekly and monthly charts, LTC is still looking bullish.

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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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