Bitcoin Enters Uptrend After Rally

FXOpen

After several weeks of range-bound trading, bitcoin finally managed to string together some gains. Prices are up $34 dollars since bottoming out at $374.08 last Tuesday. Meanwhile its little brother Litecoin is gaining ground as well, albeit to a lesser extent. But let’s start with bitcoin first.

Bitcoin Downtrend Ends

During the weekend BTC prices broke past the $392.50 swing high, ending the previous downtrend. And today we look set to break to new highs as bitcoin enters rally territory. On the chart below this slow creep higher is clearly visible. What are some of the important levels to watch?

BTCUSDH4-fev16

On the upside weak resistance can be found near the round $410 figure. The high reached two days ago stands at $409.93 on FxOpen. A stronger resistance level can be found bit higher up at $425.50 dollars per coin, followed by the round $450 figure. Above here we find an important level near $460 dollars per coin. A decisive breakout above here could extend the gains toward the round $500 resistance level, last year’s high for BTC/USD.

On the lower end, we have some support near another round level, $400 dollars. Prices bounced close to this level today at $397.30 before heading higher. But to end the current uptrend, the bears will have to push prices below the $374.08 swing low. We have more levels on the way down at $365 dollars, followed by the $350 dollars swing low reached back in January.

Litecoin Still Stuck in a Range

Despite bitcoin’s gains, alternative cryptocurrency Litecoin is still stuck in a range. In the past week, LTC prices have gained just over 3 percent, from $3.06 to $3.16 dollars per coin. This compares to BTC gains of $34 dollars, or 9 percent. The under-performance of LTC/USD can be demonstrated with the 4 Hour chart below. Compare this slightly rising pair with the chart of bitcoin’s strong rally above.

LTCUSDH4-fev16

To end the current range and join the BTC uptrend, the bulls will have to break the $3.33 swing high. A decisive break above here could open the door toward the $3.43 swing high. More resistance on the way up can be found at $3.50, $3.65 and $3.82 dollars per coin.

On the lower end, strong support can be found near the $3 dollars round figure. A decisive break of this support area would technically start a new LTC downtrend. But close to here we have another strong support area in the form of a triple bottom formation around $2.88-$2.89 dollars per coin. A clean breakdown below these levels could see more losses for Litecoin towards $2.70 and $2.50 dollars.

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.

Latest from Cryptocurrencies

Bitcoin Price Losing Correlation with Stock Market Kiyosaki Predicts: Bitcoin at $350k in August 2024. Realistic? The Price of Ethereum Rises Ahead of SEC Decision Bitcoin Price Hits a Month's High, Breaking Key Resistance April Became the Worst Month for BTC/USD Since November 2022

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: S&P 500 Index, US Dollar, FTSE 100 Index, Gold Price

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.

  • S&P 500
Indices

European Stock Indices Decline Amid Political Uncertainty

Today, the Eurostoxx 50 index (Europe 50 on FXOpen) has dropped below the early May minimum, reflecting escalating market concerns over the upcoming French elections, as reported by Reuters. Finance Minister Bruno Le Maire's acknowledgment that the current political crisis

Forex Analysis

NZD/USD Exchange Rate Falls from Nearly 5-Month High

The NZD/USD exchange rate has dropped from its highest level in nearly five months. On Wednesday, following the release of US inflation data, the NZD/USD rate exceeded 0.6220 for the first time since 15 January 2024.

However,

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.