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.

*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.

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.

forex

Crypto CFD Trading with FXOpen

Crypto CFD Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 40 markets 24/7
  • Trade with tight spreads and low commissions
  • Choose from 3 trading platforms: MT4, MT5, or TickTrader
Learn more

Latest articles

USD/CAD Consolidates
Forex Analysis

USD/CAD Consolidates

In the second half of April, the USD/CAD chart has shown a decline in volatility following significant spikes observed since February.

The Canadian dollar has stabilised against the US dollar within the 1.390–1.380 range over the

Why Coinbase (COIN) Shares Are Rising
Shares

Why Coinbase (COIN) Shares Are Rising

As the Coinbase (COIN) stock chart shows, trading closed yesterday above the $200 mark — for the first time since March.

Since the beginning of April, COIN's share price has risen by nearly 20%, while the S&P 500 index

Forex Analysis

USD/CHF Rebounds from Multi-Year Low

As the charts show, the USD/CHF exchange rate fell below 0.810 US dollars per franc earlier this week. The pair had not traded this low since the 2008 financial crisis. Demand for the Swiss franc as a safe-haven

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.