Bitcoin Breaks Out, Litecoin Fails at Resistance

FXOpen

The two major crypto-currencies Bitcoin and Litecoin clocked some nice gains this week. Bitcoin is up by $26 dollars or 4.5 percent compared to last Tuesday. Meanwhile its little brother Litecoin is up by 15 cents or just under 4 percent.

Bitcoin Breaks Out

Bitcoin surged on Sunday, breaking past the $600 round figure. The reason for the rise is yet unclear although ex-post facto some tried to tie the move to the G20 meeting held during the weekend. Another option is Bitfinex-related speculative buying. Volume more then doubled on this exchange during the short rally. No news have been announced as of yet by the troubled exchange.

BTCUSDH1-sept6

Regardless of the reason, we’re now in a tentative short-term uptrend. To end it, the bears will have to push prices below the $567 swing low. Further down we have a strong level of support at $550 dollars followed by the round $500 dollars figure.

On the upside, the first weak resistance is Sundays high at $613 dollars per coin. A break above here would confirm that the Sunday surge wasn’t just a one-day wonder. A much stronger resistance level can be found at the $650 mark. This is followed by more resistance levels at $670, $687 and $700 dollars per coin. For bitcoin now all three trends (short, medium and long-term) are bullish.

Litecoin Fails at $4 Dollars Again

Alternative cryptocurrency Litecoin failed to break above the $4 dollars mark a second time. Attempt number two took place right as big brother bitcoin surged on Sunday. Litecoin rose to a high of $4.018 but here the move stopped and we got a retracement to $3.91 dollars. We’re now quoted at $3.93 dollars per coin.

LTCUSDH4-sept6

As we said last week, we’re looking for a decisive break of the $4 dollars level. The brief and shallow pierce that happened on Sunday doesn’t qualify, thus LTC/USD remains neutral. A move above $4 dollars would start a new short-term uptrend. Resistance levels above here can be found at the $4.07 swing high, followed by $4.15. Higher up we find a resistance area from $4.43 to $4.52 per coin. A clearing of this area could intensify the gains for LTC.

On the lower end the bears need a break of the $3.50 level to restart the downtrend. Below here we have support at the $3.22 lows hit in the aftermath of the Bitfinex hack. More levels can be found below at the $3 round figure, followed by this year’s low for Litecoin at $2.89 dollars. Lower still we have the twelve-month low near $2.50 dollars per coin. A breakdown below here could lead to more losses.

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

Bitcoin Cash Analysis: Promising Resistance Breakout Cryptocurrency Prices Rise on SEC Rumours Market Analysis: Bitcoin Sets September High BTC/USD Analysis: Bulls Lose Progress Amid SEC Defeat Bitcoin Trading Volumes Fell to a Minimum of 4 Years

Latest articles

Shares

Top 5 Stocks to Watch in October: Bank on the Backfoot, No Thirst for Coca-Cola, Tech Giant Takes Dip and Electric Vehicle Volatility

October is here, and as the markets enter a new month, we take a closer look at five stocks that could be of significant interest to investors. 1) Bank of AmericaBank of America stock has taken a dive over the

Forex Analysis

Market Analysis: The American Currency Resumes Growth

The beginning of October turned out to be favourable for continued growth in the US dollar. From the data published yesterday, it follows that in September, the US manufacturing business activity index (PMI) rose to 49.0 against the forecast

Forex Analysis

EUR/USD Analysis: The Rate Updates Its Multi-month Low

Never in its history has the euro fallen for 11 weeks in a row against the dollar, but it happened. The minimum has been set for 2023. The reason seems to be that in an environment where central banks are

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.