Litecoin Falls After Litepay Fiasco

Litecoin prices were the big mover during the past week as the crypto got aggressively sold. To be fair part of this was caused by bitcoin losses, big brother lost 10 percent of its value since last Tuesday. Altcoins tend to follow bitcoin prices.

Bitcoin Down 10 Percent

Bitcoin is down by close to 10 percent since our last update, from $8,839 to $7,948 dollars right now. The downtrend noted in last week’s article remains in place for BTC/USD.

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To end it the bulls need to push bitcoin back above the $9,165 swing high. A rally beyond the $9,887 swing high is needed for a new uptrend. However due to the proximity of the $10,000 round figure, its likely that many will wait for its break before committing to the rally. Resistance higher up can be found at $10,680 dollars, followed by the double top around $11,769 dollars per coin. A breakout above here may lead to more gains.

On the lower end we have support at $7,700 dollars. This level was tested twice during the past 48 hours and seems to be holding, for now. Further down we have more support at the $7,287 swing low, followed by the major crash low at $5,980 dollars. Of course the round figures at $7,000 and $6,000 dollars may act as temporary support as well. On the longer-term charts the picture is mixed. The weekly chart is range-bound while the monthly is still showing a bullish bias.

Litecoin Falls After Litepay Fiasco

Litecoin fell to a low of $129.31 earlier today as the bleeding continues. Since last Tuesday the altcoin lost over 22 percent of its value. Given the magnitude of the loss (double that of bitcoin) it seems that the Litepay fiasco was a major driver here.

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On Monday the Litecoin Foundation came out with a statement regarding the company. According to the Foundation, Kenneth Asare, CEO of LitePay, informed them that he has ceased all operations and is preparing to sell the company. The Foundation apologized for not doing enough due diligence in this case. In early February Litepay was touted as a revolutionary LTC payment provider, causing a short-term surge in the value of LTC/USD. The Litecoin Foundation and some public LTC figures like Charlie Lee initially gave the company some free publicity, later apologizing for this move.

Now with the company closing down that hype completely fizzled out. Technically just like BTC, the downtrend in Litecoin continues for another week. To end it we need a breakout above the $174.22 swing high. A new uptrend requires a move beyond the $193.70 swing high. On the longer-term weekly and monthly charts LTC/USD is still in rally mode.

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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