Bitcoin Stalls, Litecoin Rejected at 4 Dollars


The Bitcoin rally hit a stumbling block on Sunday as prices crashed close to $40 in one hour. Meanwhile, Litecoin was rejected at the $4 mark for the third time.

Bitcoin Rally Stalls

Bitcoin is up by less than 0.5% of $3 compared to last Tuesday. Initially, the momentum move higher took us to $628.25 on Sunday but shortly thereafter prices plunged to a low of $590 on most exchanges.


As we can see in the chart above, the crash was much bigger on FXOpen/BTC-E. Here the prices bottomed out at $512.21 on Sunday. Subsequently, we got two more spikes on Monday with lows at $586 and later $581 per coin. Zooming in on lower timeframes, we can see that it took less than a minute for the prices to bounce back. It appears that the crashes were due to thin orderbooks or technical malfunction.

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As the crash to $512 was platform specific and not broad-based, the rally is still in place. To end it, the bulls will have to decisively break the $570 figure. We’re looking for a clean break here, not just a brief shallow spike below. A break below $556 would switch the short-term trend from up to down.

To resume the upward momentum, we need to see prices retake the $628 high. A strong resistance level can be found at the $650 mark. This is followed by more resistance levels at $670, $687 and $700 per coin.

Litecoin Rejected at $4 Again

Alternative cryptocurrency Litecoin got rejected at the $4 mark for the third time. This time prices got as high as $4.01. The subsequent sell-off took LTC/USD to $3.77 per coin. We’re now quoted close to these lows at $3.80.


A decisive break above $4 is needed for a new short-term rally. Resistance levels above this round figure can be found at the $4.07 swing high, followed by $4.15. Higher up we find a resistance area from $4.43 to $4.52, a clearing of which could intensify the gains.

On the lower end, the bears need a break of the $3.70 level to restart the downtrend. Below here we have a support at the $3.53 swing low followed by the $3.50 round figure. Further down we have more support at the $3.22 lows hit in the aftermath of the Bitfinex hack. More levels down can be found at the $3 round figure, followed by this year’s low at $2.89 and the twelve-month low near $2.50 per coin.

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