Litecoin broke above last month’s high and almost hit the $50 round figure. Bitcoin, on the other hand, traded mostly range-bound during the past week.
Bitcoin Volatile but Range-bound
It’s been a volatile week for bitcoin. The key $2,400 level was broken and with that, the months-long uptrend is over. During the forking fears, a low of $2,250 was hit last Thursday. But since then we’ve bounced nicely and are currently quoted at $2,677, little changed compared to last week.
Today a high of $2,738 was seen on FXOpen before prices retraced a bit. The reason for the latest rally is progress on the scaling stalemate. On Monday over 80% of the mining hash started signalling for Segwit2x. This is a technical solution that merges the Segwit upgrade with a 2MB hard fork three months later. For more on the possible scenarios after the new developments take a look at this article.
Technically BTC/USD is now in a range. A new rally requires a breakout above the all-time highs at $2,889 on Fxopen (around $3,000 on other major exchanges). On the lower end, there’s some weak support at the $2,500 round figure, closely followed by the $2,405 swing low. A break below $2,250 is needed to start a new BTC downtrend. Further down we have more support at the $2,000 round figure and the $1,718 swing low. On the longer-term timeframes, both weekly and monthly, bitcoin remains in an uptrend.
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Litecoin Nears $50 Dollars
Litecoin is at it again. Prices broke beyond the May highs on Saturday and kept going. By the end of the day a high of $45.88 was hit and two days later we peaked at $49.77 on FXOpen with other exchanges hitting the $50 mark.
With the break above $34.50, we’re now in a new uptrend. Resistance above can be found at the $50 round figure. A clean breakout above this important milestone could extend the gains. On the way down we have support at the May highs of $36.25 (resistance becomes support). This is followed by two more previous peaks at $34.64 and $32.80.
Lower still we have the $30 round figure and the $26.62 and $26 swing lows as potential support levels. A clearing of this support area and a fall below $26 could end the current uptrend. Similarly to bitcoin, on the weekly and monthly charts LTC/USD looks bullish.