Cryptocurrencies fell across the board yesterday as bitcoin had a large $28 dollars (around 10%) loss. Litecoin fell just over 10 percent as well, while PPC lost 8% and NMC went down by 9.1%. The altcoins continue the losses today as well, following big brother lower.
Bitcoin Rally Ends
The Bitcoin rally ended yesterday after the crypto closed down by $28. The pair continued to clock losses today, falling to a new two-week low of $243 flat. We have since retraced some of the losses with BTC trading back above the $250 mark.
As we can see on the chart above, BTC/USD cleared the important $259 -$266 support area yesterday. Bitcoin also broke below the trendline underpinning the move higher. With the rally now technically over, let’s look at some new levels for potential breakouts. On the top end, the round $300 figure remains to be key. As you can see above, BTC had substantial declines after hitting the mark on three separate occasions this year. A bitcoin breakout above $300 will likely spark a new rally. On the lower end, we’ve looking at the February 23rd swing low at $225. A clearing of this support may lead us to new lows.
Namecoin Down but Still in Range
While NMC/USD failed to rally substantially along with bitcoin, it had no problem following bitcoin’s 10% decline yesterday by losing a comparable 9.1 percent. Namecoin continued the losses today as well, falling to a new multi-day low of 42 cents before retracing somewhat.
Despite the losses accrued during the previous two days, NMC is still trading inside its range between $0.40 and $0.55. We are currently quoted close to the lows at $0.431 per coin. The key support on the downside will be the area between the year’s low at $0.375 and the range low at $0.40. A clearing of this area and a break lower would usher in a period of long-term losses for NMC/USD. On the high end, Namecoin will need to break the high of the range at 55 cents to generate a new uptrend. Notable levels above here include $0.65, $0.70 and $0.75.
Peercoin Follows BTC Lower
Like was the case with Namecoin, while PPC had problems gaining ground along with BTC, it quickly followed big brother lower once the losses started.
The cryptocurrency is currently quoted at $0.349, 4.3 cents down or 11 percent in two days. To spark a new downtrend, the bears will need to clear the low of the range at 30 cents. A clearing of this support could lead us toward this year’s low at $0.24. A break below here could intensify the losses for PPC/USD. On the top end, a breakout above the high of the range at $0.50 should lead to a rally in prices. Important resistance figures above here include $0.60 and the area between $0.70 and $0.73.
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 making your money go further with FXOpen.
*Cryptocurrency CFDs are not available to Retail clients in the UK