Bitcoin Gains a Massive $87 Dollars, Altcoins Follow
It’s been an exciting two days for cryptocurrencies. Since our last update, bitcoin rallied a massive $87 dollars, from $363 to a high of $449.91. Altcoins followed big brother bitcoin higher with Namecoin breaking the $1 parity level and Peercoin going over the $0.90 mark.
Bitcoin Rally Hits $450
The BTC rally continues unabated. On Wednesday prices broke the weak resistance at $380 and few hours later moved up to the next resistance at $400. Both $400 and $408 then quickly gave way to the strong buying pressure and in 30 minutes BTC/USD was quoted at $429 per coin.
After a small retracement to $403.99, bitcoin’s rally continued in the early Asian session today and hit a new multiday high of $449.91. We are currently trading just below this high at $444.40.
With the trend now shifted to the upside, more gains seem likely. It’s not a coincidence that BTC prices stopped short of $450 however. This level ($446 to be exact) was the high point of the September 23rd post-PayPal rally and is an important resistance for bitcoin. A break higher could catapult BTC/USD toward the $500 round figure. Further up, the August 21st swing high at $530 ($528.92) could provide resistance, followed by $550.
On the downside, the $400-$408 area should provide some support to falling prices. Further down, while the $380 former resistance may provide weak support, the important milestone for BTC will be the $345-$350 area. A move below $345 could end the current rally.
Namecoin Breaks Parity
Alternative cryptocurrency Namecoin closely followed bitcoin’s rise. Yesterday prices closed above the $1 parity level and today the move up continued with NMC/USD hitting a high of $1.115 before falling back.
Important levels on the upside include the round $1.20 figure, followed by $1.30 and the September 18th swing high at $1.35. On the downside, the $1 parity level will be important support for NMC. This is followed by the $0.75-$0.80 support area.
Peercoin Follows Bitcoin Higher
Peercoin followed bitcoin higher, gaining over 10 percent yesterday and almost 7% today. We are currently quoted at $0.911, above the $0.90 level marking the top of the previous congestion area. The $1 parity level will be an important milestone for PPC. A move above could see gains toward the $1.10 round number. Further up, the October 14th swing high at $1.135 could provide some resistance.
On the lower end, the $0.80-$0.823 area should support falling prices. Below this, the next level of support can be found at $0.73 per coin. As usual, whenever trading PPC/NMC/LTC you should have one eye on bitcoin, as altcoins will often follow the movements of their big brother.