Bitcoin stayed within a right range during the past six days. Meanwhile its little brother Litecoin continued the slide lower, losing another 7 percent since last Tuesday. But let’s start with big brother first.
Bitcoin Stuck in Range
Bitcoin has been stuck in a range between $216.12 and $230.96 dollars per coin since August 26th. After the large crash we saw an equally quick recovery, which didn’t quite reach the pre-crash prices. Since Wednesday we have been trading in this $14 dollars range. In the past four days, the range has shrunk further to only $7 dollars. The low of this newest range stands at $222.34 while the high is at $229.57.
Despite the current lack of progress, bitcoin is technically still in a downtrend. To end it, the bulls will need to make a decisive break above the $231 handle. On the lower end, strong support can be found at the former double bottom at $210 dollars per coin. This is followed by the round $200 figure and the $192.55 swing low. A major threshold for BTC/USD will be this year’s low at $162 dollars. A clean break below here could see more BTC losses.
Litecoin Loses Another 7 Percent
Litecoin lost another 7 percent since last Tuesday. Prices slowly drifted lower in six of the last eight days, for a total loss of 21 cents from a $2.99 dollar starting point.
While for Bitcoin the trend is down but the momentum is undecided, for Litecoin both the trend and the momentum are down. Support on the way down can be found at the round $2.50 level, followed by $2.40 and $2.05 dollars per coin. A decisive break below $2 dollars would exacerbate the losses.
One the upside we find some resistance at $3 dollars, followed by $3.18, $3.43 and $3.50. Out of these four levels, the $3.17/$3.18 area is the most important. It was a previous swing high (resistance) then it turned to support and held up prices for over one month. With prices now below the mark, it should turn to resistance again. To end the current downtrend, the bulls will need to push prices above $3.50 dollars per coin.
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 making your money go further 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.
