Bitcoin continues the rally that started on Monday. Yesterday the cryptocurrency gained a sizeable 20 dollars to close the day at $344. Today the move up continued and BTC/USD is currently quoted at $363. This is a crucial resistance for BTC. If prices can clear this area, it may open the way for an attack on the round $400 figure. For few hours now BTC/USD tried to leave the $360 level behind by gaining to $365 only to be repelled back below the $360 mark. The more prices keep pushing on $365 however, the more likely is that we will see a break higher.
Above $400, the next line the sand for bitcoin is the post-PayPal high at $450 ($446 to be exact). This is followed by the $500 round figure. On the lower bound, a move below $300 would be a cause for worry. But the recent BTC rally will not be invalidated unless prices cross below the October 5th low at $285.
Litecoin Testing $3.95
Alternative cryptocurrency Litecoin is also testing a crucial resistance of its own. After the bitcoin selloff pushed LTC/USD prices down to $3.38, litecoin rallied and is currently pushing on the $3.95 mark. The $3.95 level will be an important resistance for LTC. This was where the crypto’ s rallies were repelled on two previous occasion in the past. Due to the proximity of the $4 round figure, I would hold recommended to view the whole area from $3.95 to $4 as a potential resistance area.
If LTC/USD can clear $4 dollars, prices may rally toward the next resistance figure at $4.10. This was the swing low for LTC/USD on September 29th and may present weak resistance to the bulls. Higher up at $4.50 we find another potential resistance, followed by the $4.66 mark. On the lower end, a break below the double bottom at $3.40 may trigger renewed losses for the altcoin. Perhaps the most important thing to keep an eye on though should be bitcoin prices. In the past few weeks all cryptocurrencies (this includes Litecoin as well) have closely followed first bitcoin’s fall and then the subsequent recovery.
* FXOpen International, Innovative Broker of 2022, according to the IAFT
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.