Bitcoin Waits for ETF Decision

FXOpen

Bitcoin prices are trading around the $1,000 figure with no clear direction. Market participants seem to be focused on the upcoming bitcoin ETF decision and ignoring the news from China. Little brother Litecoin entered a short-term bear market last week. As usual, we’ll begin with BTC and come back to Litecoin later in the article.

Bitcoin Traders Wait for ETF Decision

A lot has happened since our last update seven days ago. The major news was the Big Three Chinese exchanges stopping bitcoin and litecoin withdrawals. This initially crashed prices and we saw a low of $913.99 on BTC-E. Shortly thereafter, however, a recovery occurred that sent BTC/USD back to the $1,000 handle. This exact scenario repeated one more time, with prices bottoming out at $963 dollars a few days later.

btcusdh4-fev14-copy

We seem to be stuck around the $1,000 level for now as traders wait for the decision on the bitcoin ETF. The negative news from China continues to be shrugged off in the West as prices trade at $20-$25 premium. In the past, it was Chinese exchanges which ‘lead the charge’. The deadline for the ETF is set for March 10th, although if the decision is negative we will likely hear about it sooner than that. You can read more about the market expectations regarding the ETF here. Googling ‘bitcoin ETF’ will produce a flurry of articles as well.

Technically bitcoin is still in an uptrend. To end it, prices will have to break below the $913 swing low. A new downtrend requires a move below the $875 swing low as well. On the upside, no clear resistance levels can be seen until the multi-year high at $1,096 on FXOpen and $1,160/65 on other USD exchanges.

Litecoin Shares Bitcoin’s Fate

Litecoin shared in bitcoin’s fate this week. As noted above, the Chinese withdrawals ban was applied to Litecoin as well. This led to a sharp drop on February 9th with prices bottoming out at $3.52 dollars. This started a new downtrend for Litecoin.

ltcusdh4-fev14-copy

We are currently quoted at $3.70 dollars per coin. Below here we find the first major support is at $3.52, closely followed by several potential support levels at $3.40, $3.36, $3.31 and $3.22 dollars. A clearing of this support area could lead to more LTC losses.

On the other end, a breakout above the $4 round figure would end the current downtrend. A new rally requires a break above the $4.12 swing high as well. On the longer-term charts (weekly and monthly) LTC/USD is range-bound.

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 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

Market Analysis: Bitcoin Surpasses $40,000 Per Coin BTC/USD Analysis: New High for the Year Shows Bulls Are Indecisive Market Analysis: Results of Black Friday in Financial Markets BTC/USD Analysis: Bulls Preparing New Assault on 37,500 Level? BTC/USD Analysis: Bears Aggressively Defending 37,500 Level

Latest articles

Shares

5 Stocks To Consider in December 2023

As we approach the curtain call for 2023, it's time to reflect on a year filled with market-shaping events. From the resurrection of tech stocks to the fall of financial institutions, the capital markets sector has been anything but dull.

Cryptocurrencies

Market Analysis: Bitcoin Surpasses $40,000 Per Coin

December begins extremely optimistically for the cryptocurrency market, resembling: → December 2020, when bitcoin grew by 46.9%; → December 2017, when bitcoin grew by 38.9%; → December 2016, when bitcoin grew by 30.8%. If there are psychological patterns in the

Forex Analysis

EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Weakens after Fed Chairman's Comments

Today, investors are assessing the speech of US Federal Reserve Chairman Jerome Powell, who indicated that the interest rate is currently at a restrictive level, but the regulator allows for the possibility of another increase if necessary. The manufacturing business

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. 60% 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.