Cryptocurrencies Waiting for Next Move

Cryptocurrencies have been trading aimlessly during the past 7 days. Bitcoin is locked in a small range between $225 and $243. Litecoin has been trading between $1.72 and $1.86 all week. The markets are waiting for the next directional move.

Bitcoin Trading in 7 Percent Range

Bitcoin has been trading in a small 7 percent range between $225 and $243 since February 17th. With the next BTC auction scheduled for March 5th, market participants may prefer a ”wait and see” approach. While the initial announcement last week had little effect on the bitcoin price, the auction itself may be a different matter altogether.

BTCUSDDaily-fev24

The current congestion area can be seen on the chart above. The crypto-markets have slowed down considerably. Volatility, as measured by the 14 day Average True Range, has trading trading around $13 dollars. This compares to an average of $25 dollars during most of January. While the extremes of the range at $243 and $225 may pose some challenges, a move beyond them may not translate into a bigger move. This is because both of the levels are closely followed by important support/resistance, notably $266 on the top end and $220 on the bottom.

A break above $266 would reignite the stalled rally, while a move below $220 may end it. A clearing of $266 may propel us toward the $300 round figure. Higher up, the next resistance can be found at $334, closely followed by $350. On the lower end, bitcoin will need to take out the $208 swing low to spark a new downtrend. Notable support levels below include $200 and $192, both of them weak levels. Further down, the first important mark is the January 15th swing low at $162 per coin.

One Month of Consolidation for Litecoin

If you think the range-bound trading in bitcoin was bad, take a look at Litecoin. The alternative cryptocurrency spent the last 28 days in a range between $1.66 and $2 dollars. During the past 7 days that range shrunk further to only 14 cents ($1.72-$1.86).

LTCUSDH4-fev24

The important levels for LTC/USD are $1.66 on the bottom and $2 on the top. A clearing of either of these price extremes (not just a brief spike above/below) may translate into a larger move. On the higher end, a breakout beyond $2 dollars would open the door to $2.40. On the bottom, a move below $1.66 may see losses toward the round $1.50 mark. Further down, weak support levels include $1.23 and $1.05. The major number to watch on the lower end is the $1 dollar parity level. A breakdown below would intensify the losses.

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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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