Bitcoin Bounces After Large Losses

FXOpen

A lot has happened since our last bitcoin update. Last week BTC/USD was (barely) holding onto the $10,000 mark but by Tuesday we dropped to a low of $5,980 dollars. Litecoin saw lows at $105 dollars before a bitcoin-led bounce took it out of the doldrums.

Bitcoin Drops by 40 Percent in 6 Days

The news about the Tether subpoena last week shook market confidence. Bitcoin prices dropped by 40 percent in 6 days to hit a low of $5,980 dollars. Here we got somewhat of a rally to $8,468 dollars but there is no certainty that this will be more then a ‘dead cat’ bounce. We are quoted at $7,568 dollars right now, much below the $19,850 all-time high.

btcusdh4-fev7-copy

The downtrend on the daily charts continues. To end it the bulls will need to push prices above $12,000 dollars. A new uptrend requires a breakout above the $12,982 swing high. Support on the way down can be found at the most recent swing low at $5,980 followed by the $5,000 round figure. This is an important milestone for BTC/USD as well as a previous major resistance. A clear break of this level could lead to more BTC losses. On the longer-term weekly charts bitcoin is range-bound. The monthly charts are still keeping the bullish bias.

Litecoin Drops to $105 Dollars

Litecoin again followed BTC/USD lower as it broke the $10,000 handle. The coin dropped from $161 dollars all the way down to $106.20 during the initial dump, a loss of 34 percent. The bounce then took LTC/USD all the way to $173.25 dollars as news emerged about Litepay, a litecoin payment processor.

ltcusdh4-fev7-copy

However as we can see on the chart above those gains couldn’t be sustained as the bears used the high prices to sell into support. The second push lower double-bottomed nearly at the same spot, this time hitting $105.55 dollars. This area along with the $100 round figure remain as strong support. A decisive break of $100 dollars could lead to further LTC losses.

Litecoin remains in a downtrend on the daily charts. On the upside the bulls need a break above $181 dollars to end the downtrend. But a new rally requires a move above the $214 swing high as well. On the weekly charts LTC/USD remains in rally mode but a move below $100 dollars could change that. On the monthlies litecoin is keeping the bullish bias.

Trade bitcoin on MetaTrader 4 platform with FXOpen broker

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Crypto CFD Trading with FXOpen

Crypto CFD Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 40 markets 24/7
  • Trade with tight spreads and low commissions
  • Choose from 3 trading platforms: MT4, MT5, or TickTrader
Learn more

Latest articles

An Important Bullish Pattern Forms on the NIO Share Price Chart
Shares

An Important Bullish Pattern Forms on the NIO Share Price Chart

Today, the share price of NIO Inc. (NIO), a Chinese manufacturer of "smart" electric vehicles, is trading above $4 – a development that may be viewed as an optimistic scenario following the drop to $3 in the first half of April,

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season
Indices

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season

Despite the fact that President Trump’s earlier decision to impose tariffs (at higher rates than expected) shook the stock markets, the S&P 500 index (US SPX 500 mini on FXOpen) could still end April without significant losses

USD/CAD Consolidates
Forex Analysis

USD/CAD Consolidates

In the second half of April, the USD/CAD chart has shown a decline in volatility following significant spikes observed since February.

The Canadian dollar has stabilised against the US dollar within the 1.390–1.380 range over the

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.