The two major cryptocurrencies Bitcoin and Litecoin are back in a range, although they took a different path to get there. Bitcoin ended its uptrend and is now back in an undecided territory after another week of downside movements. Litecoin briefly broke the important support noted in our latest article but has bounced back hard since then and moved back inside its range. As usual, we’ll first start with BTC and cover its little brother later on.
Bitcoin Back in Range
Everyone’s favorite cryptocurrency is now back in a range after spending the last seven days mostly in the red. Prices dipped to a low of $581.89 on FXOpen and $592 on other exchanges. While this dip doesn’t count as a break of the $590 level noted last week, the upside momentum has been completely lost in BTC/USD. For example, on September 4 a high of $613 was reached and today we’re trading below here at $607 per coin. So, we’ve basically stayed in this new range for the past 23 days.
What’s next for Bitcoin? The two key levels to watch are $592 on the downside and $629 on the upside. A decisive break below/above these levels could lead to an extended movement. Above $629 we find a resistance at the $650 round figure. This is followed by more resistance levels at $670, $687 and $700 per coin.
A move below $592 may lead to a new downtrend. We have a support below here at the $566 swing low followed by $556 and $550 per coin. A break of the $550-$556 support area could lead to more BTC losses.
The spikes problem noted last week on FXOpen (BTC-E) persists. On September 22, large spikes occurred with ask prices spiking at $1,000 and bid prices hitting a low around $130, leading to margin calls. It appears that this was due to technical difficulties but until the problem is resolved, caution and low leverage should be exercised.
Litecoin Bounces Strongly
Litecoin has broken the important support at $3.77 . This support was noted in our previous article as a potential trend starter. But the move lower quickly attracted buyers and LTC bounced back hard. We’re now back inside a range again.
The levels to watch are the new low at $3.69 on the downside and $4.02 on the upside. A decisive break above $4 could start a new rally. Resistance levels above here can be found at the $4.07 swing high, followed by $4.15. Higher up we have a resistance area stretching from $4.43 to $4.52 per coin.
Below $3.69 we have a support area from $3.50-$3.53. A clearing of this area could extends the gains toward the five-month low at $3.22.
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