Bitcoin, Litecoin in Limbo as Direction Awaited

Bitcoin continues to trade range-bound as we wait for direction. While the crypto lost about $10 dollars since our last update, no major levels have been broken. Bitcoin’s little brother, Litecoin, is also trading undecided after a brief spike above $1.50 dollars.

Bitcoin Waits for Direction

Everyone’s favorite cryptocurrency had several daily losses in a row, declining by $1.50, $0.40 and $3.10 dollars. But like we mentioned above, the slow drip lower hasn’t broken any important levels. Bitcoin is currently trading at $232 dollars per coin.

BTCUSDDaily-may19-1

This is just above the weak support at $230 dollars. A more important support area can be found between the April 26th swing low at $210.86 and the round $200 dollars figure. A decisive break of this area should spark a new BTC downtrend. On the higher end, the deciding barrier is $250 dollars. A BTC/USD breakout above it may trigger a new rally. Notable resistance levels higher up are $258 (weak), followed by $270 and $300 dollars. As we’ve been repeating for the past few months, the $300 mark is very important. This is a former triple top for bitcoin that stopped two previous rallies (see chart below). A clean breakout above it should exacerbate the gains.

BTCUSDDaily-may19-2

Along with the range-bound price movement, volatility has suffered as well. The 20 day Average True Range is now down to $6.43 dollars. The 20 ATR has seen a steady decline from reaching a high of $26.53 on January 29th. Coincidentally, this was also the day when BTC failed to break above the important $300 dollars mark. In this low volatility environment, it’s probably best to stay on the sidelines and wait for the market to give us direction first.

Litecoin Briefly Spikes Above $1.50

Litecoin spiked above the $1.50 dollars resistance last Wednesday, hitting the next resistance level at $1.60 before falling back. But the gains proved to be elusive as the move retraced completely in the same minute. I wasn’t watching the markets when this happened so not sure if this was a bad tick or caused by an exhaustion of the orderbook. In any case, the $1.50 dollars level hasn’t been broken and remains to be valid.

LTCUSDDaily-may19

A clean breakout above $1.50, not just a brief spike above like what happened on Wednesday, may usher in a period of more LTC gains. Important resistance levels above the mark can be found at $1.60 and $1.70. Higher up there is the March 23rd swing high at $1.7961. On the downside, the double bottom near $1.30 per coin should provide some support to falling prices. However if the bears can clear this level, the downtrend may resume and lead to more losses for Litecoin.

Petar Kotevski

Petar is a forex trader and writer with 9 years of experience in financial markets. He has been following bitcoin since 2010. A year ago, as the BTC market matured, he started getting more involved by writing articles on bitcoin and other alternative currencies.

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