During the past three days there was a strong bounce in both bitcoin and litecoin. Bitcoin hit a low of $7,287 on Sunday before rallying all the way to $9,020 today. Litecoin was sold to $136.31 before it recovered to hit a high of $172.51 earlier.
Bitcoin Bounces but Downtrend Remains
After large losses of over $2,000 last week BTC/USD hit a high of $9,020 today. Softer tones on crypto regulation from the G20 helped to ease investor sentiment somewhat. During the weekend Mark Carney, the head of the Financial Stability Board, said that ‘crypto-assets do not pose risks to global financial stability at this time’ citing the relative size of the overall market cap.
However a later mention in the G20 communique pledged to apply money laundering and terrorist financing standards to cryptocurrency. The G20 also called for more information and recommendations on crypto regulation by July.
The main driver behind the gains is probably drip buying from oversold levels. Regardless of the rally the downtrend on the daily charts remains. To end it the bulls need to break the $10,000 round figure again. A new uptrend requires a break of the $11,769 dollars swing high as well. On the longer-term weekly charts BTC is range-bound. The monthly is holding on to the bullish bias.
Litecoin Joins in the Fun
As is usually the case, altcoins followed bitcoin higher in the bounce. Litecoin rallied over $36 dollars to hit a high of $172.51 today. This is a move of over 26 percent from the $136 swing low. Still just like BTC/USD, litecoin too remains in a downtrend.
To end it the bulls need a move above the $193.70 swing high. But while this would mean a technical end to the downward trend, we have strong resistance above here at $196 and $200 dollars per coin. Bearish traders may hold on until these levels are taken out as well. A breakout above the $217.57 swing high is needed for a new LTC rally. Higher up we find more resistance at the $231.16 swing high followed by the $250 round figure and the two-month high at $251.76 dollars. On the longer-term weekly and monthly charts LTC/USD is still in an uptrend.