- Bitcoin dropped below $10000 but holds key support
- Litecoin with a chance for a bigger upward move
After reaching the highest level of the year at $10450, Bitcoin launched a correction. However despite slight pullback, cryptocurrencies still trade much higher against the beginning of the year. Let’s take a closer look at the technical situation on BTC and LTC charts.
Despite the correction we have seen in the last few days, cryptocurrencies are trading in upward trend since the beginning of the year. Market cap of Bitcoin (BTC) is above $175 billion (10 billion less than last week) and Ethereum (ETH) market is worth $22.5 billion. Ripple (XRP) holds the third spot with an almost $12 billion market cap. Source: coinmarketcap.com
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Firstly, let’s look at the technical situation on Bitcoin chart. Taking a look at H4 interval, one can see that upward move slowed down and the price returned below a key psychological barrier at $10000. In addition, BTC broke below the upward channel and threatens to make a bigger downward correction. However, the drop was halted by buyers at the lower limit of Overbalance structure at 9500$ which should be considered a key support for now. As long as the price sits above it, bulls seem to be in markets’ favour. On the other hand, a break below it may change the mid-term sentiment to bearish.
BITCOIN H4 interval. Source: xStation5
LTCUSD
Looking at Litecoin chart, one can see that the upward move led to invalidation of the Overbalance structure. Following a break above the upper limit of 1:1 structure, the $63 handle should be considered a key support. This level is also being strengthened by previous price reactions. As long as the price sits above, continuation of the upward impulse is the base case scenario. The key resistance lies at $103 handle and is marked with 61.8% Fibonacci retracement of the downward swing started in June 2019.
LITECOIN D1 interval. Source: xStation5
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