The value of litecoin has collapsed in line with its bitcoin counterpart as news that the Peoples Bank of china (PBOC) has ordered financial institutions to close exchange accounts ripples through the cryptocurrency-sphere.
In addition to regulatory pressure, reports on Friday suggest that malware associated with a number of android apps has, and is being, used to mine bitcoin and litecoin without the knowledge of the devices owner. While the news will likely not have a direct effect on the value of bitcoin, litecoin or of the numerous alternative digitals, the negative connotations could fuel the current risk-off sentiment in the cryptocurrency market heading into the weekend.
Of the two leading digitals, litecoin came off worse, with the LTC/USD losing more than 15% of its value on Thursday to close at 13.900, the pair’s lowest level since early March. As with BTC/USD, the LTC/USD carried yesterday’s downside momentum into this morning, before correcting from support at 12.396 at the European session open. This correction found initial resistance at 14.397, and after a small period of consolidation hit daily highs at 14.850. A temporary decline sees the pair trading at 13.753, with in-term resistance at 14.005 and in-term support at 13.673.
A break below support would suggest a continuation of the bearish bias illustrated throughout Friday morning, with a close below 13.673 offering up an initial downside target of Friday morning resistance at 13.156. Beyond that, look to daily lows at 12.396 as a secondary downside target.
Conversely, a break above aforementioned in-term resistance would suggest Friday’s correction might not yet be complete. A close above 14.005 would validate previous resistance at 14.397 as an initial upside target, and beyond that, daily highs at 14.850.
All said, the recent volatility in both the LTC/USD and the BTC/USD makes solid predictions of the day’s direction difficult, but a number of key technical levels should serve to add clarity as the day matures.
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