Bitcoin off Highs, Litecoin Down

FXOpen

Bitcoin is trading at $7770 right now, $716 dollars off the $8,486 high reached last week. Today’s losses are taking down other crypto-currencies as well, with Litecoin down around 5 percent.

Bitcoin Off Highs

Bitcoin traders took a while to digest the news about the ETF rejection but it appears that it’s finally starting to happen. As noted in our previous article this rejection is problematic because a large part of the rally was build on speculation about a possible ETF approval in August. But with the rejection reasons dealing with the bitcoin market itself and not a particular trading vehicle, that ETF now seems dead in the water too.

Bitcoin off Highs, Litecoin Down

Technically BTC/USD is still in a bull market on the daily charts. To end it we need a breakdown below the $7,212 dollars swing low. A move below the $6,000 round figure is needed to trigger a new downtrend in prices.

In between these two levels there’s strong support in the $6,800 – $6,900 area. This was the breakout point for the current rally and this is also where we find several previous swing highs such as $6,840, $6,788, $6,821 and $6,806 dollars. Because resistance becomes support this area should at least slow down any decline. On the weekly charts bitcoin is in a downtrend. The monthly charts are still looking bullish.

Litecoin Down 5 Percent

Litecoin is down by 5 percent today, from $82 to $78 dollars per coin. As you can see on the chart below, LTC/USD is still inside the same range it’s been in for the past few weeks. Two times the bulls tried to unsuccessfully break out, the first time trading as high as $94.34 dollars. This was heavily sold into and by the end of that day LTC was back below the top of the range, closing at $87.81. The second try took us only to $90.40 before sellers reemerged.

Bitcoin off Highs, Litecoin Down

Part of the reason why altcoins have been so weak in the face of a 49 percent rally in BTC prices was the fact that the bitcoin rally was ETF-based, as noted above. In the hypothetical situation of ETF approval it’s likely that specs money would’ve flown from alts to bitcoin in attempt to front run a possible rise in prices. While BTC rallied by 49 percent, Litecoin only rose by 30%, when measured from bottom to top.

The breakout points for LTC/USD are now at $94.34 and $72.50 dollars. A decisive move beyond either of these two price extremes could start a new trend. On the longer-term charts Litecoin is in the same boat as BTC, bearish on the weeklies but bullish on the monthlies.

Try LTC trading on FXOpen demo account.

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

Financial Market News

Weekly Market Wrap With Gary Thomson: CAC 40, AUD, OIL, AMAZON

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. European Stock Markets on

Commodities

Price of Gold Briefly Exceeded $2,050 per Ounce

In addition to new records in the stock markets, the reaction to yesterday's news about inflation in the US was also a decrease in government bond yields and a rapid rise in the price of gold — the cost of XAU/

Indices

Nasdaq-100 Price Hits All-time High after 4 Straight Months of Gains

The Nasdaq-100 index is holding above 18,000 today following yesterday's bullish momentum, fueled by inflation news. The PCE consumer spending index amounted to 0.4% on a monthly basis, which was in line with analysts' expectations. A year ago,

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.