Bitcoin is pushing on the $332 mark after a five day rally lifted prices from a low of $304 on Friday. At the same time, other cryptocurrencies recovered but notably Litecoin continues to trade weak.
Bitcoin Pushing on $332
In the past two days prices had two unsuccessful attempts at breaking this level. Yesterday’s try fizzled out at $332.03. Today the bulls made more headway by pushing BTC to a high of $332.92. But their advance was quickly repelled and we didn’t even get an hourly close above $332.
The $332 mark is important because this is previous support now turned into resistance. This was also the starting point for bitcoin’s latest move lower. A clearing of this resistance area and a bitcoin climb above $335 should end the current downtrend. This doesn’t mean that prices will continue on a full-blown rally if $335 gives way. To jumpstart a sustainable rally, we may need to see a breakout beyond $365 or better yet, above $390 per coin.
On the lower end, bitcoin formed a double bottom at $304 on Thursday/Friday. A break of this formation and a move below the round $300 figure should exacerbate the losses toward $285. Lower still, a break of the $266 milestone, the highest high for bitcoin during most of 2013, may usher in a period of longterm losses.
Litecoin Continues to Trade Weak
Alternative cryptocurrency Litecoin continues to trade weak. The BTC rally during the last few days did provide some support to Litecoin prices. But while bitcoin recovered most of the losses accrued last week, LTC is currently trading below the 23.6% Fibonacci retracement of the latest downmove.
Litecoin will need to break and stay above $3 dollars per coin to have a chance at ending the current downtrend. But to generate a sustainable rally, we will need to see LTC/USD climb back above $3.50. On the lower end, a break of the $2.71 swing low may lead to more losses toward $2.50. Below here, the $2 dollars round figure may support prices. As usual, when trading altcoins you should always keep one eye on big brother bitcoin. A break of $335 and subsequent stabilization in BTC prices may lend a helping hand to Litecoin bulls.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage, 30% margin call, 0.01 lot minimum transaction size with no maximum — at your service. Open your trading account now or learn more about making your money go further 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.
