Altcoins Disregard Bitcoin's Rally

FXOpen

Bitcoin broke the important $266 mark on Tuesday and rallied higher to $282.99. But altcoins haven’t followed big brother higher. While they did move up somewhat on Tuesday and Wednesday, altcoins remain well inside their congestion areas. Litecoin continues to trade between $1.66 and $2 dollars per coin. Peercoin and Namecoin are stuck in their own ranges as well.

Peercoin Still in Range Between $0.30 and $0.50

Alternative cryptocurrency Peercoin is still trading in its range between 30 and 50 cents per coin. Prices are currently quoted at $0.378, just 1.5 cent higher compared to last week.

PPCUSDDaily-mar5

On the upside, the important levels start with  the $0.50 figure. A clearing of this level may trigger a rally toward the December 29th swing high at $0.60. Higher up, the previous support area between $0.70 and $0.73 may turn into resistance on the way up. On the lower end, the key number to watch is $0.30. A move below here could lead to a momentum move that takes out $0.24, the yearly low for Peercoin. This could intensify the losses for PPC/USD.

Namecoin Still Trading Between $0.40 and $0.55

Namecoin is still trading in its congestion area between $0.40 and $0.55. Since our last update, the crypto’s range has narrowed further with a high at $0.524 and the low at $0.467. We are currently quoted at $0.487. This compared to $0.468 during our update 7 days ago.

NMCUSDDaily-mar5

A move above $0.55 may push prices toward the January 26th swing high at $0.65. Above here, we have two more resistance levels close by at $0.70 and $0.75. On the downside, the key support lays between this year’s  NMC low at $0.379 and the range’s low $0.40. A clearing of this area and a move lower should trigger a new downtrend in Namecoin prices.

Bitcoin in Rally Mode Ahead of Auction

Unlike its younger siblings, bitcoin has been in rally mode for the past few days. Prices took out the important $266 mark on Tuesday and despite yesterday’s large retracement, BTC/USD is still trading above the level right now.

BTCUSDDaily-mar5

The next important resistance for BTC is the $300 round figure. A break above $305 could exacerbate the gains toward $334. On the lower end, a pullback below $250 should be a cause for worry to the bulls but the rally will technically remain in place until $225 gives way.

The third bitcoin auction is scheduled to take place today. The bidding will commence at 14:00 CET (8 AM EST) and will last for 6 hours. The US Marshall Service will auction off 50,000 BTC this time around. The USMS will only release the name of the winner and not the price per coin bid. But other figures released by the agency on Monday, like the number of registered bidders and bids received, may help us gauge buyer interest. The market may start to move well before that however. In previous instances volatility increased few hours after the auction closed, so stay vigilant.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage, 30% margin call, 0.01 lot minimum transaction size with no maximum — 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.

Latest from Cryptocurrencies

Sharp Change in BTC/USD Price: Causes and Consequences Market Analysis: Bitcoin Surpasses $40,000 Per Coin BTC/USD Analysis: New High for the Year Shows Bulls Are Indecisive Market Analysis: Results of Black Friday in Financial Markets BTC/USD Analysis: Bulls Preparing New Assault on 37,500 Level?

Latest articles

Forex PAMM

Overview of FXOpen's Best-performing PAMM Accounts of November 2023

According to the results of November, we can single out the most promising PAMM providers for investment and monitoring for the future. First of all, one should consider accounts with good profitability and low drawdowns. In this PAMM-review on the

Forex Analysis

EUR/USD, GBP/USD, and USD/JPY Analysis: Dollar on the Rise amid Good US Employment Data

The US Federal Reserve will publish its interest rate decision on Wednesday, December 13th. The American regulator is not expected to take steps towards tightening or easing monetary policy, given the strong November labour market report published last Friday. Thus,

Commodities

Crude Oil Ends Freefall, but Is It Back in the Black?

In the early stretch of December, the WTI Crude Oil market experienced a sudden and substantial downturn, sending shockwaves through the financial landscape. From a robust $77.71 per barrel on November 29, the value plunged to just over $69.

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.