Bitcoin Up but Momentum is Weak

Bitcoin has managed to successfully conquer the $6,500 handle yesterday. We hit a high of $6,592 during the small pump but a lot of those gains were quickly surrendered. We are currently quoted at $6,564 dollars per coin.

Bitcoin Up but Momentum is Weak

The short-term momentum in BTC/USD is up but weak. The percentage gain yesterday was only 1.4%, far from convincing. To get a stronger rally we may need a breakout above the $6,850 figure. A move above here would take us into bull territory on the daily charts.

Below we’re looking at the $6,200 level as a potential bear trend starter. Weak support below can be found at $6,116 followed by the $6,000 round figure. We have a major level of support at the yearly low of $5,766 dollars. A clean break below here could lead to a quick retest of the $5,000 round figure. There’s no change in trend on the longer-term charts either. Here the weekly charts are slightly bearish while the monthlies show a slight bullish bias.

On the news front there’s not much of substance to report. Yesterday the period for public comments on the bitcoin ETFs expired. The SEC is now expected to deliver a decision by February at the latest. The nine Bitcoin ETFs proposals include 5 from Direxion, 2 from GraniteShares and 2 from ProShares. Although some of the concerned ETF parties expressed optimism, the odds for approval of a bitcoin ETF are fairly low at this stage.

Litecoin Double Bottom at $47 Dollars

Litecoin formed a double bottom in the $47 dollars area. Prices hit a low of $47.78 dollars on October 31st, slightly above the $47.03 price noted on September 12th. This is also the yearly low for LTC/USD.

The bounce from this area of support was strong enough to propel prices to a high of $56.47 today, effectively ending the short-lived bear trend on the daily charts.The altcoin is trading at $54.36 dollars right now.

Litecoin needs a breakout above $60 dollars to trigger a rally. On the opposite end a clean breakdown below $47 dollars would re-start the bear and possibly lead to large losses below. Litecoin is bearish on the weekly charts. The trend situation is neutral on the monthlies.

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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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