We have a mixed bag this week as Bitcoin climbs higher but its little brother tests support. Bitcoin prices broke the previous swing high at $642 and hit a new high at $656 per coin before falling back. Litecoin on the other hand tested the support at $3.76 dollars. We’ll see how that turned out later on, for now let’s take a look at BTC/USD.
Bitcoin Stalls at $650 After Gains
Bitcoin prices peaked at $656.99 after taking another step higher. Those gains couldn’t be sustained however and soon BTC settled down close to the $650 round figure. We noted this level as potential resistance in our previous article.
The rally is still underway. To end it the bears will have to push prices back below the $622 swing low. Below here weak support can be found at the breakout point for the current uptrend ($614-$615) but a much tougher support will be the $600 round figure. A decisive breakdown below here could shift the short-trend from up to down.
On the top end, if the bulls manage to peel prices off the $650 mark, we have more resistance at $670 . Higher still $687 and $700 round figure are notable levels as well. All three trends (short-term, medium-term and long-term) for bitcoin are still up.
Litecoin Tests Support
The LTC bears managed to stage an attack on the $3.76 support level. Last week we noted this support as potential trend starter. But the move lower was short-lived, with prices bottoming out at $3.7495 before bouncing hard. The subsequent rally took LTC/USD 3.7 percent higher to a high of $3.8961. We are now quoted somewhat below here at $3.83 per coin.
The strong rejection near $3.76 confirms the validity of this area as support. A decisive break below the $3.7495 low would start a new LTC downtrend. As usual we’re looking for a sustained break, not just a brief shallow spike below the level.
Close to here we have important support at the $3.69 swing low. This is followed by a support area around $3.50 per coin. A clearing of this area could extend the losses toward $3.22 dollars.
On the upside, we’re still looking for a break above $3.93 dollars. A clearing of this level could trigger a new uptrend. Conservative traders may want to wait for a break of the $4 round figure as well. Above here we find resistance at the $4.07 swing high, followed by $4.15 and a resistance area from $4.43 to $4.52 per coin. A breakout above here could intensify the gains.
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 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.