Bitcoin Hits Multiday Highs but $300 Remains Key

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Everyone’s favorite cryptocurrency hit new multi-day highs at $240.44 today. This is above the previous BTC swing high reached on January 30th at $234.99. Other altcoins followed suit but many were unable to break higher and remain locked in a range. But despite bitcoin’s gains today, the $300 round figure continues to be key in the battle to generate a new rally.

Bitcoin Hits $240 but Key $300 figure Far Off

After peaking at $240.44 today, BTC/USD fell back and is currently quoted at $236.48. The lack of follow-through after the break of $235 should worry the bulls. We already saw one failed attempt to break out of the range on the low side. Two days ago BTC fell to a low of $208, below the previous swing at $212. But prices quickly reversed to close slightly up on the day at $225. Today that move up continued to $240. There is a chance that the bulls may get trapped in a similar manner as the bears did below $212.

BTCUSDH4-fev3

The congestion area is still new and the possibility of false breaks is substantial. To generate a sustainable rally, bitcoin will need to stabilize above the $300 round figure. A spike above $305 per coin may accomplish the same result. On the low end, the ”key figure” is $162, the swing low reached during the January downtrend. A move below here may restart the move lower.

What are other potential support/resistance levels? On the upside we have $250 and $266. Above $300 the $335 swing high may act as resistance. On the downside, the swing low at $208 and the $200 round figure may act as weak support. Below here, the $192 swing low is another level to keep track of. But the two key figures remain $300 and $162.

Litecoin Still in Range Around 50% Retracement

Alternative cryptocurrency Litecoin is locked in a trading range wrapped around the 50 percent retracement of its recent move up. We are currently trading at $1.85 per coin, just 3 cents above the 50 percent mark at $1.82.

LTCUSDH4-fev3

Litecoin is in a similar boat to Bitcoin. The range is still new and undefined and potential breakout points are far off. To generate a sustainable move higher, LTC will need to clear its January 26th high at $2.40. On the downside, the swing low near parity is  the number to watch. A Litecoin break below $1 will likely lead to more losses. As usual, wherever trading altcoins pay attention to BTC movements and the key bitcoin levels at $300 and $162.

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.

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