Bitcoin is ending closer to a breakout on the upside. Since our last update, BTC/USD advanced by $4 dollars, or just below 2 percent. Litecoin on the other hand has traded mixed and is still stuck at the $3 dollar handle.
Bitcoin Edges Closer to Breakout
Bitcoin is edging closer to an upside breakout. The bulls have managed to string together several days of gains, pushing BTC almost 2 percent higher. The chart below shows the slow moving but steady march higher since September 22nd.
Still, despite the gains, bitcoin is yet to surpass the top of the range at $245.80. Furthermore, even if the bulls manage to break this level, right above it we find an even more important resistance at the round $250 figure. As repeated numerous times, this level was the starting point for both the latest rally and the latest sell-off. The conservative approach calls for waiting until this level is cleared. Higher up, important resistance can be found at $269 dollars. A move above here should intensify the gains.
On the downside, the lower bound of the range stands at $220 dollars per coin. A clean break below should start a new downtrend. Right below this level we find another support at the swing low of $216 dollars, followed by the previous double bottom of $210. The notable levels on the downside end with the August swing low at $192.55 and this year’s low at $162 dollars per coin.
Litecoin Still Around $3 Dollars
Alternative cryptocurrency Litecoin is still trading around the $3 dollars figure. We are currently quoted at $3.02, only 2 cents or 0.66% higher compared to last week. Given the volatility present in the crypto-market, this is a negligible move.
Similarly to big brother bitcoin, Litecoin is also stuck in a range, albeit with a bullish bias. In the past hour we’ve seen LTC/USD advance from $3.00 to $3.0236. At the same time bitcoin jumped from $240 to $243. There is definitely some bullish momentum higher. But it remains to be seen whether this will translate into a full-blown rally.
For Litecoin the line in the sand is at $3.12-$3.18 area. During the past few weeks, prices already tested the $3.12 handle twice, trading as close as $3.1241 in the first and $3.1223 in the second attempt. With each attack on the level, the odds increase that we will get a break higher. The problem is that, similarly to bitcoin, right above the top of the range we find another important resistance at $3.18. A decisive breakout above $3.19 may be needed to start a new LTC rally.
On the lower end, the low of the range is at $2.50. But just 10 cents below here we find another important support at $2.40 dollars per coin. The bears will have to clear this figure as well to establish a durable downtrend.
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