Both Bitcoin and Litecoin entered a consolidation period last week. Big brother bitcoin is trading around the $230 dollars mark while litecoin’s move higher got rejected at $3 dollars.
Bitcoin Consolidates Around $231 Dollars
Everyone’s favorite crypto-currency has entered a consolidation period. During the past seven days, BTC/USD moved in a range between a low of $226.05 and a high at $245.80. We are currently quoted at $228.90.
Consolidation was the likely outcome, as suggested in our article last week when we said that: ”caution is advised because we just ended the previous downtrend. Markets usually don’t switch from downtrend to uptrend right away. This doesn’t mean that a rally wont happen but it’s the less likely scenario compared to say, more consolidation below $250.”
What’s next for bitcoin? A break below the $216 swing low may have some follow-through. But the problem is that close-by we have a more important level in the former double bottom at $210. We may need to see decisive break of this level to restart the downtrend. Further down, the August 25th swing low at $192 dollars is another figure to keep an eye on. The important levels to the downside end with this year’s low at $162 dollars per coin.
On the upper side, the first notable resistance is at $250 dollars. To begin a new rally, the bulls will need to push prices above this previous support now turned resistance. Higher up we find more resistance at the $270 dollars mark.
Litecoin Bounces at $3 Dollars
Alternative cryptocurrency Litecoin bounced off the $3 – $3.18 resistance area. As noted in our article last week, LTC/USD was trading right between these levels, fighting with the important resistance at $3.18 dollars per coin. As can be seen on the chart below, the bears ultimately won and they took down LTC. On Sunday we hit a new multi-day low of $2.73. We have since bounced back somewhat with litecoin currently quoted at $2.77.
Litecoin is in a similar situation to bitcoin. Both cryptos are in consolidation and waiting for their next catalyst for big moves. For LTC/USD the two key levels are $3.18 on the top end and $2.40 on the bottom. A clean breakout above $3.18 would start a new LTC uptrend. The reverse is true for a break below the $2.40 dollars mark, this would restart the downtrend and open the door for more losses toward $2.05.
Other levels in between are the swing low at $2.50 dollars and the round $3 dollars figure. But with the two key figures close-by, it’s likely that these levels will get overshadowed by $2.40 and $3.18.