Bitcoin Drops 2%, Still in Range-bound Territory

Bitcoin Drops 2%, Still in Range-bound Territory

Bitcoin fell by over 2 percent since our last update, from $327 to $318 dollars per coin. Meanwhile little brother Litecoin is down by 4 cents or just over 1% in percentage terms.

Bitcoin Now 12 Days in Range

Bitcoin fell by $9 dollars since last Tuesday, or about 2.5 percent. The fledgling cryptocurrency has been range-bound for twelve full days now. One coin is selling for $318.13 dollars at the moment. On the chart below we can see that we’re still in that range roughly between $300 and $340 dollars per coin.

BTCUSDH4-nov24

But it hasn’t been a particularly calm week. On Thursday Reuters came out with a report that EU ministers are thinking about clamping down on bitcoin and other anonymous forms of payment. Initially prices fell to a low of $309 flat, but after the Friday meeting came and went with no decision, bitcoin rallied back up to $320 dollars.

We’re not out of the woods yet. Increased regulation from the EU is still a possibility. It’s not clear if the ministers instructed the EU commission to draft new rules on the matter.

The price action is undecided. Support can be found near $309 dollars, this is a double bottom formation that formed last week. It can clearly be seen on the 4 hour chart above, the two lows happened on November 16th at $310 and November 20th at $309 dollars. But because this is a short lasting pattern, it may not be strong support. It’s followed by another weaker level at the round $300 figure. The number ”to beat” is $290 dollars per coin. A decisive breakdown below here would start a new BTC downtrend.

On the upside, a break above the high of the range at $340-$350 dollars may have some follow-through. But to restart the rally the bulls will need to push bitcoin above $403 dollars per coin.

Litecoin Down by 1 Percent

It has been an uneventful week for Litecoin. Prices are currently down by 4 cents or just under 1.3 percent. On the 4 Hour chart below we can see that LTC/USD is still trading around $3.12 dollars per coin. The low of the range is currently at $2.88 while the high is at $3.26 dollars.

LTCUSDH4-nov24

A decisive break below the $2.88 low would start a new downtrend. Notable support levels below here include $2.70 and $2.50 dollars per coin, followed by the January swing high at $2.40 dollars. Lower still, the area near the $2 round figure will be very important support. On the upside, it would take a move above $4.31 dollars to restart the LTC uptrend.

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