Short-term Trading Levels for Bitcoin, Ripple & Litecoin
The recent slide has cryptocurrencies postured for lower prices, but clarity is somewhat lacking in regard to the big-picture. However, given the volatility of the group there are trading levels of interest which can help guide short-term maneuvers. Today, we’ll check in on three of the heavyweights – Bitcoin, Ripple & Litecoin – and the technical outlook on the 4-hr time-frame.
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Bitcoin key levels around 8700 and 7800
Since topping on 5/5, Bitcoin has been backpedaling with a series of lower-lows and lower-highs forming on the 4-hr time-frame. The key zone of resistance arrives around 8700 (+/- 50 pts.), a spot which we just saw an overnight rejection unfold from. A rally beyond and a cross of the trend-line off the monthly high will be needed before momentum can pick up to the top-side. Looking lower, price support first arrives around 7800 on a drop below the weekend low at 8208.
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BTC/USD 4-hr Chart
Ripple resistance around 75c, support ~62c
Ripple turned down overnight from just shy of the 75c area where a pair of bounces have developed from in recent weeks. With a push above, XRP will be trading back inside a range it was stuck in for nearly three weeks and will need to trade above 95c to reassert an upward trend. Looking lower, the area around 62c held over the weekend and is viewed as a fairly solid level of support, but if the recent trend lower is to gain further momentum then it won’t likely hold for long.
XRP/USD 4-hr Chart
Litecoin rejected from mid-140s
Over the weekend, Litecoin broke a solid zone of support formed during the latter part of last month. Overnight, there was a rejection on a bounce, which further cements the mid-140s as an area of significant resistance. Looking lower, ~125 is minor support, with the area around 110 seen as the biggest threshold. It will take a strong move lower to trade there, but if momentum can continue from the $50 move already seen off the monthly high, then it may not take that long to extend another $25-30 lower from current levels.
LTC/USD 4-hr Chart
Helpful Resources for Cryptocurrency Traders
Whether you’re a new or experienced cryptocurrency trader, we have several resources to help you;Introduction to bitcoin trading guide, indicator for tracking trader sentiment, and a weekly webinar discussing the latest developments.
---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.