Litecoin Bounces at Support, Trend Down

It has been an uneventful seven days for bitcoin and litecoin. Both coins are trading not far from where they were during our update last week.

Bitcoin Little Changed

Bitcoin is trading little changed compared to last Tuesday. We are quoted at $6,255 dollars right now, a drop of only $43 or just under 1 percent. As you can see on the chart below, during the past ten days we’ve been trading in a tight range between $6,100 and $6,600 dollars.

A breakdown below $6,100 dollars could trigger a new downtrend on the daily charts. Conservative traders may wait for a break of this year’s low at $5,790 dollars before jumping in. On the top end the bulls need a break of this month’s high at $7,409 dollars to start an uptrend in prices.

The $5,700 to $6,000 area is a triple-bottom for BTC/USD. We got three bounces here in February, June and August of this year. A clearing of this area could quickly lead to a test of the $5,000 round figure. As you can probably guess from the lack of movement this week, there’s no change in trends on the longer-term charts. Bitcoin is slightly bearish on the weeklies and slightly bullish on the monthlies.

Litecoin Bounces at Support, Trend Down

Litecoin hit a new yearly low of $47.03 last Wednesday but from here we got a quick bounce higher. After a couple of hours LTC/USD was trading back above the $50 round figure. After a few days an interim high of $58.48 was hit. From here however the bears sold us back to the $50 dollars levels again.

Regardless of the bounce, the trend on the daily charts remains down. To end it the bulls will have to push us above the $58.48 swing high. A new rally requires a break above $69.34 dollars per coin.

On the lower end the area around the $50 round figure remains to be the key support for LTC/USD. A decisive breakdown below $47 dollars could lead to more losses. Litecoin is still bearish on the weekly charts. On the monthlies the trend has now shifted to neutral.

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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