Bitcoin Hits Monthly Lows Before Stabilizing

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Bitcoin prices hit new monthly lows of $5,883 dollars before stabilizing somewhat. Litecoin hit a new 2018 low yesterday at $49.10 dollars before rallying higher. It’s quoted at $54 dollars right now.

Bitcoin Hits Monthly Lows

As noted above BTC/USD hit new lows for this month before stabilizing. We are trading at $6,330 at the moment, not far from the $6,488 dollars quoted last week.

Bitcoin Hits Monthly Lows Before Stabilizing

In that article we said that the $5,700 to $6,000 area will provide some support. This is exactly where the current downmove decided to stall. A decisive clearing of this area should open the door to the $5,000 round figure. The latest bounce seems like a dead-cat. The lack of a fundamental driver coupled with the relatively small gains shouldn’t give much hope for an extended move.

The bulls need a breakout above the $7,155 swing high to end the downtrend. Other potential resistance levels that can be seen on the chart above are $6,622, $6,840 and $7,212 dollars per coin. A move beyond the two-month high at $8,486 dollars could start a new rally in prices. On the longer-term charts there’s no change since last week. The weekly chart is bearish while the monthly is still keeping a slight bullish bias.

Litecoin Bounces at 2013 Top

Litecoin prices almost hit the 2013 top yesterday. We traded as low as $49.10, missing the $48.40 high by only $0.7 dollars or 1.4 percent. We are currently quoted bit higher at $54.88 dollars.

Bitcoin Hits Monthly Lows Before Stabilizing

The bounce for LTC/USD around $50 dollars was expected. In our last article we pinned this area as strong support. Like we said back then, here we have the 2013 high at $48.40 dollars coupled with the $50 round figure. That 2013 high wasn’t broken until July of 2017. Because resistance turns to support, you would expect some pushback when this level is tested. A clean break below $48.40 could lead to extended losses.

The downtrend will remain in place until we clear the $76.64 swing high. A breakout above $90.40 dollars is needed for a new rally. More resistance in between these two levels can be seen at $72.50 and $85 dollars. On the longer-term charts, the picture for LTC is the same as bitcoin, bearish on the weeklies but slightly bullish on the monthly charts.

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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.

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