Bitcoin Bounces From Lows

FXOpen

Bitcoin fell to new lows last week as the downtrend continues. Prices dropped to $6,420 dollars per coin before a temporary bottom was found. On LTC/USD a low of $108.44 was hit before prices recovered somewhat.

Bitcoin Bounces From Lows

Bitcoin is quoted at $7,378 dollars right now, a gain of 15 percent from the lows. However, this bounce is still very much in the realm of ‘dead cat’, as counting from the start of March bitcoin is down by 29 percent.

btcusdh4-apr3-copy

To end the current downtrend on the daily charts BTC/USD needs to break the $9,018 swing high. A new uptrend may commence if we decisively break the $9,165 high. Higher up there’s more resistance at the $9,887 swing high followed by the $10,000 round figure. A breakout above here may accelerate the gains. But with BTC at $7,378 we are still far from that scenario.

Below current prices, there’s support at the latest swing low of $6,420 dollars. This is followed by this year’s low at $5,980 dollars. A breakdown below this level may lead to more losses. Further down the $5,000 round figure is another notable support. On the weekly charts, BTC/USD is still range-bound but the monthlies are keeping the bullish bias.

Litecoin Back at $130 Dollars

Litecoin is back above the $130 dollars level after a strong bounce. On Sunday a low of $108.44 was hit but from here prices rallied by almost 25 percent to a high of $135.52 dollars. We are currently trading slightly below this high at $131.30 dollars.

ltcusddaily-apr3-copy

Below there’s strong support in the $105.55 to $108.44 double bottom area. While not a perfect double bottom, on the daily charts this is ‘good enough’. Three percent difference doesn’t mean much here. However, it’s not clear if this bounce will turn into a real trend reversal as we only had one day of strong gains for LTC. For now, Litecoin remains in a downtrend. To end it the bulls need to push us above $169 dollars per coin.  A new rally requires a break above the $174.22 swing high as well.

A breakdown below the $105.55 swing low could lead to more losses. The downtrend could accelerate if the move continues below the $100 round figure. On the longer-term weekly and monthly charts, LTC/USD is still looking bullish.

Trade Bitcoin, Litecoin or other cryptos in the form of CFDs 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.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

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.

Latest from Cryptocurrencies

BTC/USD Price Exceeds $60,000 Per Coin Bitcoin Price Risks Not Staying above $50k Ethereum Price Falls after Exceeding $3,000 Ethereum Price Exceeds $2,800 Bitcoin Price Exceeds Psychological Level of $50k

Latest articles

Indices

NASDAQ Rally Shows Tech Stocks Are Back in Focus - But for How Long?

The NASDAQ index, well known as a premier listing venue for North American technology companies across the entire spectrum from the Silicon Valley giants to recently listed newcomers, has been going from strength to strength during the beginning part of

Forex Analysis

The Market Focusing on Speech of Federal Reserve Head

Despite the abundance of fundamental data of the past trading week, the main currency pairs continue to trade in rather narrow flat corridors. Thus, the US dollar/yen currency pair is trading above 150.00, from time to time testing

Forex Analysis

Swiss Franc Weakens after Inflation News

Inflation in the country fell in February to its lowest level in nearly two-and-a-half years, data from Switzerland's Federal Statistical Office showed on Monday. Although consumer prices rose 1.2% compared to a year earlier, there is reason to believe

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. 65.68% 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.