Bitcoin had a substantial correction last week leading to the end of the latest month-long bull run. Litecoin followed big brother lower but has not ended the uptrend yet.
Bitcoin Rally Ends
The uptrend started in November is finally over for BTC after prices broke below the important $12,711 swing low last Friday. Subsequently, we saw a low of $10,680 on FXOpen. From here we retraced most of the losses with prices topping out at $16,470 yesterday. We are currently quoted at $15,427 dollars per coin.
As you can see on the chart above, we are now in a range. A new rally requires a breakout above the $20,000 round figure. A new downtrend may commence if prices fall below the latest swing low at $10,680 dollars. For now, we remain in ‘wait and see’ mode. Here are some of the important support and resistance levels for bitcoin.
On the upside, we have the latest swing high at $16,470 dollars, followed by two weaker levels at the former swing highs of $17,147 and $17,547 dollars. Higher still we have a major resistance area comprised of the all-time high at $19,850 and the $20,000 round figure. A decisive breakout above this important milestone should lead to a new bullish trend on the dailies for BTC/USD. On the longer-term weekly and monthly charts, bitcoin remains in an uptrend.
Litecoin Trades Lower
During the large BTC correction last week litecoin followed bitcoin lower and hit a low of $162.22 dollars per coin last Friday. Then we saw a recovery to $291 dollars, followed by a secondary drop to $222 dollars. Since then we’ve been somewhat stuck in a trading wedge with no major market movements.
The sharp drop from the highs at $370 to $162 dollars (total $208 dollars or 56%) didn’t end the rally. The threshold to do that is now set at $162 and a break below this swing low should end the uptrend on the daily charts. On the weekly and monthly charts, LTC/USD remains in bullish mode.
Resistance above current prices can be found at the $291 swing high followed by the $300 round figure and the all-time high at $370 dollars. On the lower end, we have support at $245, $222 and $200 dollars per coin. Further down we have an important level at $162 dollars. Like we said above a break below here could end the current rally. A breakdown below the $88 swing low would start a new downtrend in prices.
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