Bitcoin fell by over 2 percent since our last update, from $327 to $318 dollars per coin. Meanwhile little brother Litecoin is down by 4 cents or just over 1% in percentage terms.
Bitcoin Now 12 Days in Range
Bitcoin fell by $9 dollars since last Tuesday, or about 2.5 percent. The fledgling cryptocurrency has been range-bound for twelve full days now. One coin is selling for $318.13 dollars at the moment. On the chart below we can see that we’re still in that range roughly between $300 and $340 dollars per coin.
But it hasn’t been a particularly calm week. On Thursday Reuters came out with a report that EU ministers are thinking about clamping down on bitcoin and other anonymous forms of payment. Initially prices fell to a low of $309 flat, but after the Friday meeting came and went with no decision, bitcoin rallied back up to $320 dollars.
We’re not out of the woods yet. Increased regulation from the EU is still a possibility. It’s not clear if the ministers instructed the EU commission to draft new rules on the matter.
The price action is undecided. Support can be found near $309 dollars, this is a double bottom formation that formed last week. It can clearly be seen on the 4 hour chart above, the two lows happened on November 16th at $310 and November 20th at $309 dollars. But because this is a short lasting pattern, it may not be strong support. It’s followed by another weaker level at the round $300 figure. The number ”to beat” is $290 dollars per coin. A decisive breakdown below here would start a new BTC downtrend.
On the upside, a break above the high of the range at $340-$350 dollars may have some follow-through. But to restart the rally the bulls will need to push bitcoin above $403 dollars per coin.
Litecoin Down by 1 Percent
It has been an uneventful week for Litecoin. Prices are currently down by 4 cents or just under 1.3 percent. On the 4 Hour chart below we can see that LTC/USD is still trading around $3.12 dollars per coin. The low of the range is currently at $2.88 while the high is at $3.26 dollars.
A decisive break below the $2.88 low would start a new downtrend. Notable support levels below here include $2.70 and $2.50 dollars per coin, followed by the January swing high at $2.40 dollars. Lower still, the area near the $2 round figure will be very important support. On the upside, it would take a move above $4.31 dollars to restart the LTC uptrend.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage, 30% margin call, 0.01 lot minimum transaction size with no maximum — 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.