Bitcoin Retraces, Altcoins Still Unable to Rally

FXOpen

Since our last update, bitcoin had a healthy retracement of $25 dollars after its bounce at $300 dollars. This led us to a low of $274 per coin, a down move of over 8 percent. While altcoins have failed to keep up with the BTC/USD rally, they had no problem following big brother lower. Peercoin went down by 7%, Namecoin by 9% and Litecoin by 6 percent during bitcoin’s retracement. Most coins have retraced some of the those losses however, with both Bitcoin and Litecoin getting close to its previous highs.

Bitcoin Nears $300 Again

After a sizable 8 percent retracement, bitcoin is getting close to the $300 figure again. We are currently quoted at $288 dollars per coin, just 4 percent away from this important round number. As the daily chart below shows, $300 has held up 3 previous rallies. The BTC move up on January 7th stopped at $301.01. The rally on January 26th ended at $303.30, while the most recent bounce last week stopped at $298.999.

BTCUSDDaily-mar17

With each subsequent test of this level, the odds increase that we will see a breakout higher. If that happens, we may see a move up towards the previous swing high at $334 per coin. Higher up, notable resistance levels include $350 and $370. To end the current rally, the bears will need to take prices below $266.

Litecoin Yet to Break $2.05

Alternative cryptocurrency Litecoin has yet to clear the $2 dollars resistance figure and break its previous high at $2.05. The crypto may be waiting for bitcoin to take out $300 dollars before following along.

LTCUSDDaily-mar17

We are currently trading just 2.5 percent below the mark at $2.006. With both BTC and LTC trading so close to their potential breakout points, if you’re bullish on Litecoin it may be better to wait for Bitcoin to break $300 first. Big brother is only 4 percent away from this round figure, so if a LTC rally happens, you probably wont miss much of the move by waiting.

Beyond $2 dollars the first important resistance level for Litecoin can be found at the previous swing high at $2.40. This number ended the January rally in LTC/USD. Higher up, we have notable resistance levels at $2.70, $3 dollars and $3.40 per coin. Since Litecoin is yet to breakout from its range, a clearing of the low of this congestion area at $1.66 dollars may spark a downtrend in prices. Important support levels below include $1.50 and $1.05.

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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.

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