Crypto market: Cryptocurrencies are trying to recover after the recent falls

• Bitcoin slumped last week but managed to bounce back off the 161.8% Fibonacci retracement
• Litecoin rebounded from the round 100 USD handle

Cryptocurrencies are considered by some investors as safe assets at a time when panic prevails on the traditional markets. However, as you can see from the market's recent behaviour, this theory turns out to be wrong. Strong declines on the global stock markets were also accompanied by sharp sell off of all cryptocurrencies. Let us take a closer look at the technical situation on the Bitcoin and Litecoin. 

Bitcoin

Let's look at the technical situation on the main cryptocurrency. The Bitcoin price collapsed last week, the cryptocurrency lost more than 50% in only two sessions. However, the falls were halted at the 161.8% Fibonacci retracement of the last upward swing. The price reached key resistance level today and the further price behaviour will depend whether the zone at $6500 will be defended or broken. If Bitcoin manages to break above this level, then this might indicate a further upward move. On the other hand, if sellers take advantage here, then there is a chance that declines will continue.

BITCOIN W1 interval. Source: xStation5

Litecoin

Looking at the second largest cryptocurrency - Ethereum, the price dropped over 50% last week. However, the decline was halted at the round 100 level, where the lows from late 2018 are located. A rebound here may encourage buyers to be more active, but it is worth waiting for the weekly candle to close. If  the candle after closing will have a white body, then there is a chance for a bigger upward correction. On the other hand, if the price returns below $120, then this may generate another downward momentum. 

LITECOIN W1 interval. Source: xStation5