Only a few days ago, crypto enthusiasts were euphoric as bitcoin (BTC/USD) climbed as high as $318 on speculation fueled by the Greece crisis, coming within a hair of breaking even for the year. Litecoin (LTC/USD) capped an unbelievable rally to $8.65, gaining over 500% in just over two months.
But as we assessed at the time, closure on the Greece front- in whatever form it takes- will disperse the uncertainty essential for speculation to flourish.
Bitcoin just broke through its post-crisis low of $281 on Bitstamp, falling by 4.8% to $279, and further declines appear likely. After its fall of 8.5% immediately after the Greece deal earlier this week, it managed to retrace as high as $297.
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Litecoin has resumed its fall as well, giving up 25% during the past 24 hours. It broke through its post-crisis low of $3.61, hitting $3.40. The sudden drop of over 58% late last week erased the majority of gains realized from its rally, raising suspicions of price manipulation. Accelerated selling appears likely before prices stabilize.
The LTC/BTC rate has returned to 0.0126, challenging the lows set following the big drop.
Litecoin is now within striking distance (13%) of crossing back below its 50-day moving average (MA), which may be a major bearish signal for traders. Litecoin has held its ground above the mark since mid-May.
The second half of July last year heralded a major decline for the markets, reaching a climax during the August sell-off.