Slow Week for Cryptocurrencies

It’s been a slow week for the crypto-market. Bitcoin traded in a tight $16 dollars range during the past seven days while Litecoin stayed within its consolidation area.

Bitcoin in 3.8 Percent Range

Bitcoin continues to trade relatively calm, with prices stuck in a $16 dollars range last week. In percentage terms this is around 3.8 percent. We are currently quoted at $431 dollars per coin, only $2 dollars higher compared to last Tuesday.

BTCUSDH4-jan5

The two potential breakout points haven’t changed. A decisive breakdown below the $400 round figure could start a new BTC downtrend. Important support levels below here are the former swing high at $379 dollars, followed by the $350 round figure. Weaker support levels can be found bit lower at $340 and $310 dollars per coin.

Note that as is usually the case with these levels, they’re more of support/resistance areas and not exact numbers. Important levels like the $400 round figure are watched by a lot of market participants, so expect to see a lot of games being played around these figures.

On the upside, a clean breakout above $461 dollars level could reignite the rally. Higher up the first major resistance can be found at the round $500 figure. This is close to the top reached during the November rally. Back then prices peaked at $504 dollars on most BTC exchanges.

Litecoin Still in Consolidation Mode

Bitcoin’s little brother is still in consolidation mode. Since our last LTC update, the pair hit a high of $3.505 and a low of $3.400. The total range top to bottom in percentage terms was 2.89 percent, even lower then bitcoin. We are currently quoted at $3.461 dollars, only 3 cents below last Tuesday’s price.

LTCUSDDaily-jan5

The support levels on the lower end start at $3.35 dollars. A decisive breakdown below here could start a new downtrend. The next support below here can be found near $3.26 dollars per coin, followed by the round $3 dollars figure. Lower still we have the former swing low at $2.88 dollars, closely followed by $2.70 and $2.50 dollars per coin. The January swing high at $2.40 dollars could provide some support to falling prices. But a stronger level can be found bit lower at the $2 dollars round figure.

On the other end we have two weaker resistance levels at $3.64 and $3.76 dollars per coin. But the important level for the bulls is a bit higher up at the $3.82 swing high. A clean breakout above this swing high may trigger a new LTC rally. Higher up more resistance levels can be found at $4.00 and $4.50 dollars, followed by the November high for Litecoin at $4.85 dollars.

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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