Bitcoin, Litecoin Settle in Large Triangles

FXOpen

Both bitcoin and litecoin have settled into large triangle patterns. The formations are ascending triangles, potentially signalling that more gains are on the way.

Bitcoin Settles in a Large Triangle Pattern

With the price action during the past seven days, bitcoin has settled firmly inside a large triangle. On the picture below you can see this formation. Prices peaked at $462.16 on April 26th and we’ve been rang-bound ever since, albeit with a slight bullish bias.

BTCUSDDaily-may17

Theory says that ascending triangles point to more gains going forward. Still, a more prudent approach would be to wait for prices to breakout first. We’re currently quoted at $452 dollars per coin and the high is at $462 dollars. A decisive breakout above the $462-$465 resistance on Fxopen and $470-$475 on other bitcoin exchanges should jump-start the lost bullish momentum. A clean break of this resistance has the potential for quick gains toward the $500 round figure, last year’s high for BTC/USD on most exchanges. The medium-term trend is also bullish for bitcoin while the long-term trend is still neutral.

On the downside, a breakdown below the lower bound of the triangle around $445 may end the current uptrend. A break of the next swing low at $435 dollars may turn the short-term trend to bearish. The breakout point for the current rally near $426 dollars may act as support, at least temporarily. We have more levels on the downside at the $412 swing low and the round $400 figure.

Litecoin in its Own Triangle

Alternative cryptocurrency Litecoin is in a similar boat as big brother. Prices here are wedged in their own triangle. We peaked at $4.194 on April 17th and have been range-bound ever since. On the chart below we can see the price action in LTC/USD during the past few weeks.

LTCUSDDaily-may17

A clean breakout of the highs at $4.194 would confirm the ascending triangle as a trend continuation pattern. Above here we have resistance at the round $4.50 figure, followed by the $4.85 swing high. Higher up we have another round figure at $5 dollars. From here we have a large gap to the next level at $8.64 dollars (2015 high) but as we’ve written previously, some resistance levels are likely to emerge in between. Potential candidates include the round figures at $6, $7 and $8 dollars as well as $6.50 and $7.50. These round figures often act as support/resistance levels or price magnets.

On the downside, a decisive break of the lower bound of the triangle near $3.78 dollars per coin would end the current rally.

 

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

Shares

UnitedHealth (UNH) Share Price Plummets

UnitedHealth shares crashed by nearly 23% yesterday after the healthcare giant reported weaker-than-expected Q1 2025 results:

→ Earnings per share: actual = $7.20, expected = $7.29
→ Revenue: actual = $109.5bn, expected = $111.5bn

Technical Analysis of UNH Share Chart

As far

Indices

Stock Markets Consolidate Ahead of the Holidays

A lull is expected on the financial markets today due to a shortened trading week related to the Easter holiday celebrations.

It is reasonable to assume that traders will get a “breather” after a news-heavy April, which caused a volatile

Forex Analysis

The Pound and Euro Reach New Yearly Highs

Despite global economic instability and Donald Trump’s tariff policy, the EUR/USD and GBP/USD currency pairs are demonstrating upward momentum, reaching new yearly highs.

Today, market participants are focused on the European Central Bank meeting, where significant statements

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.