Altcoin Market Rout Accelerates as Bitcoin Clears $266

FXOpen

Altcoins have hit new lows across the board today as bitcoin broke the important $266 barrier. Litecoin broke $1.90 and is currently trading at $1.50 per coin. Peercoin cleared the $0.50 mark and is now quoted at $0.33. Even Namecoin, which was trading relatively stronger compared to other cryptocurrencies last week, fell precipitously.

Bitcoin Breaks Important $266 Level

Bitcoin cleared past the important $266 barrier today. Earlier forays below only got as low as $260 and $258. Today’s move lower translated into renewed losses as BTC/USD fell close to $40 dollars to $221 per coin before stabilizing somewhat. Buying one bitcoin will currently cost you $228 dollars.

BTCUSDH4-jan13

Today’s swing low at $221 may present some (very weak) support. Below here, the area near $205 per coin may also present some challenges to the bears. Above, BTC will need to climb back above the important $266 level to end the current downtrend.

BitStamp Restart Doesn’t Help

Even the successful restart of BitStamp didn’t help investor confidence in cryptocurrencies. The struggling exchange was offline since January 5th as they migrated to new equipment after an intrusion into their system allowed a hacker to transfer out about $5 million worth of bitcoins. In a classic ‘’buy the rumor sell the fact’’ traders continued with the selling after BitStamp got back online.

Namecoin Breaks $0.55

Namecoin broke the previous swing low at $0.55 last week. The cryptocurrency then proceeded to lose some more ground, falling below the half-parity level at $0.50 this week.

NMCUSDH4-jan13

Today’s swing low at $0.45 may act as support but keep in mind that the level hasn’t been tested yet so it may prove to be weak. This is closely followed by another potential but untested support at $0.40. Lower still, it’s hard to find new levels to target, it’s been a while since NMC has traded this low. Going back to 2013 I see some support near $0.31 but given how far we are currently from that figure (over 30 percent) Namecoin may find other support in the meantime. To end the current downtrend, NMC/USD will need to climb back above $0.60 per coin. But even more important for Namecoin may be bitcoin’s $266 level. If BTC/USD manages to regain a foothold above $266, it may help altcoins across the board.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

Latest articles

   Weekly Market Wrap With Gary Thomson: GBP/USD, EUR/USD, USD/JPY, XAU/USD, NVDA Stock
Financial Market News

Weekly Market Wrap With Gary Thomson: GBP/USD, EUR/USD, USD/JPY, XAU/USD, NVDA Stock

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • GBP/USD Hits Four-Month
Analysis of USD/JPY: Was There an Intervention?
Forex Analysis

Analysis of USD/JPY: Was There an Intervention?

Yesterday’s news of slowing inflation in the US sharply weakened the dollar, anticipating the Federal Reserve’s monetary easing. In the first 15 minutes after the data release:

→ EUR/USD rose by approximately 0.45% to the psychological level

What Is a Parabolic Arc Pattern, and How Can You Trade It?
Trader’s Tools

What Is a Parabolic Arc Pattern, and How Can You Trade It?

The parabolic arc pattern is a significant formation in technical analysis, showcasing rapid, exponential price movements that signal significant bullish momentum followed by sharp reversals. This article delves into identifying, trading, and managing the risks associated with parabolic arcs.

Understanding

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.