Bitcoin Traders Wait for Next Move

Bitcoin traders are waiting for the next move in prices before jumping on-board. We are still range-bound with no clear direction. Litecoin is in a similar predicament , likely waiting for its big brother to make the first move.

Bitcoin Higher by 90 Cents

Bitcoin is trading barely changed compared to the prices seen seven days ago. We’re now quoted at $608.69 per coin. Last Tuesday, we recorded the price of $607.79 in our previous BTC article. The high-to-low range was a bit higher with BTC/USD topping out at $611 and hitting a low of $598. But both of those moves fizzled out quickly and the prices withdrew back inside the range. The rectangle below shows the price action during the past seven days.

BTCUSDH4-oct4 - Copy

The two important levels to watch are $614 on the upside and $590 on the downside. A decisive break above $614 could spark a new rally. Above here, we find a weak resistance at last month’s high of $629. Higher up we have a stronger resistance at the $650 round figure. This is followed by more levels at $670, $687 and $700 per coin.

On the other end, a clean break below $590 could start a new downtrend. As we said last week, due to the spikes issue on the MT4 platform, it’s a good idea to confirm any break lower with prices on other major BTC/USD exchanges. This problem has subdued in the past 10 days but it’s still a good exercise to check where other markets are trading.

Below $590 we have a support at the $566 swing low followed by $556 and $550 per coin. A break of the $550-$556 support area could lead to extended losses. Both the medium-term and long-term trends for Bitcoin are bullish.

Litecoin Waits for Direction

Alternative cryptocurrency Litecoin is waiting for a direction. Although we’re currently trading about 1.5% below last week’s price, no major levels have been taken out yet.

LTCUSDDaily-cot4 - Copy

The key levels for LTC/USD are $4 on the upper end and $3.69 on the lower end. A decisive breakout above $4.02 per coin could start a new rally in prices. Resistance levels above here can be found at the $4.07 swing high, followed by $4.15. Higher up we have a potential resistance area from $4.43 to $4.52 per coin. A clearing of this area could intensify the gains.

A move below $3.69 could usher in a new LTC downtrend. Below here we find a support area from $3.50-$3.53. A clearing of this area could extend the gains toward the five-month low at $3.22. More support lower can be found at the $3.12 double bottom closely followed by the $3 round figure.

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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