Bitcoin Rallies Above $1,700, Litecoin Hits $29.75

FXOpen

The crypto bubble continues for another week. Yesterday bitcoin hit a high of $1,705 dollars on Fxopen. It’s little brother Litecoin narrowly missed hitting the $30 dollars level.

Bitcoin Rallies Above $1,700 Dollars

The bitcoin rally goes on. Prices hit a high of $1,705.80 dollars yesterday. We are currently quoted only slightly below this high water mark at $1,691 dollars.

btcusddaily-may9-copy

Fundamentally we can ‘pin’ this latest surge on three reasons. The first and most obvious one is the ongoing bubble in crypto markets. Forex Bitcoin prices have risen almost 100% since hitting a low of $901 on March 25th. Its market cap is now flirting with the 30 billion figure while the total crypto market cap is approaching 50 billion.

The second reason is troubled exchange Bitfinex announcing an audit. While the company didn’t choose one of the four major accounting firms, traders took the announcement as a sign of solvency. Spreads between Bitfinex and the rest of the USD market narrowed significantly, adding to the positive market sentiment.

The third and final reason for BTC gains is the bloodbath in the altcoin market. Ether, Bitcoin’s largest competitor, fell by over 25 percent in the past two days before recovering somewhat. Most of the top ten altcoins are trading deep in the red today.

There is little doubt that prices are now in bubble territory across all cryptos. But bubbles can last a long time and provide even more profits if you’re already long. A break of the current bullish trend requires a move below the $1,272 swing low. A move below the $1,200 round figure would switch the current rally to a downtrend. If you’re not already in a position, taking one near the potential highs seems risky. Volatility is already high and any trades should be done with very small size to account for this.

Litecoin Almost Hits $30 Dollars

Litecoin narrowly missed the $30 round figure on Fxopen, trading as high as $29.75 yesterday. Today, however, the coin is under severe selling pressure due to the ongoing bleeding in the altcoin market. A low of $23.49 was hit few hours ago, a drop of over 20 percent from the highs.

ltcusdh1-may9-copy

Nonetheless, the bullish trend is still in place and to end it the bears will have to push LTC/USD below the $14 dollars swing low. A decisive break below the $10 round figure could switch the current trend from up to down. On the long-term charts (both weekly and monthly) LTC is still in a bullish trend.

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.

*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.

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.

Latest articles

Analysis of XAU/USD: Gold Price Sets Historical Record
Commodities

Analysis of XAU/USD: Gold Price Sets Historical Record

As the XAU/USD chart shows, on 16th July, the gold price rose above $2460 for the first time in history. The bullish sentiment is driven by:

→ Anticipation of Fed rate cuts, as the appeal of non-yielding bullion generally increases

US Banks Set a Bullish Tone at the Start of Earnings Season
Shares

US Banks Set a Bullish Tone at the Start of Earnings Season

Company earnings reports for the second quarter will be a crucial driver of stock market movements in the coming weeks. Traditionally, the largest banks kick off the earnings season, and their performance indicators today are setting a bullish tone.

For

The Dollar Corrected After a Sharp Decline. Will the Uptrend Resume?
Forex Analysis

The Dollar Corrected After a Sharp Decline. Will the Uptrend Resume?

A sustained decline in the core consumer price index in the US contributed to a sharp pullback in the American currency. The GBP/USD currency pair is trading near the psychological level of 1.3000, EUR/USD buyers are attempting

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.