Cryptocurrencies in Limbo as Year Draws to a Close


Cryptocurrencies are entering a state of limbo as the year draws to a close. In the past two days bitcoin has been ranging in a tight $10 dollars area between $307 and $317. Litecoin is also trading flat, stuck between $2.64 and $2.74 per coin. Namecoin has been hovering around $0.71 since Monday, after losing 14 percent last week.

Bitcoin Ranging Between $307 and $317

Bitcoin spent the last two days ranging between $307 and $317. While the bias is undoubtedly down, the momentum lower has been stunted by repeated rejections of $300. The double bottom at $304 continues to be an important milestone for BTC.


A decisive break below $300 should extend the decline towards the swing low at $285. Below here, a break of the $266 mark, the highest high for bitcoin during most of 2013, may usher in a period of longterm BTC losses. On the high end, bitcoin will need to break $335 per coin to sap the strength of the current downtrend. A clean break of $350 may trigger bullish BTC trend, at least in the short-term.

Litecoin Continues to Trade Near Yearly Lows

Alternative cryptocurrency Litecoin continues to trade near its lows for the year. Yesterday we briefly touched a new 2014 low at $2.6385, just slightly below last week’s extreme at $2.6397. We are currently quoted just shy of the lows at $2.6730.


While more LTC/USD losses are likely, we may have to wait for a resumption of the normal trading environment (January 2nd and onward) to see fresh impetus in the pair. A clean break of $2.64, not a brief spike lower like yesterday, should prolong the losses towards $2.50. A breakdown past $2.50 will open the way toward $2 dollars per coin. On the upside, a move above $2.80 should worry the bears. But the downtrend will remain in place as long as prices stay below $3 dollars.

Namecoin Extends Decline to $0.70

After last week’s break of $0.75, NMC extended the decline to a low of $0.705. In our article on Thursday we said ‘’ the break of $0.75 may lead to more losses toward $0.70.’’ With the $0.70 mark now hit, the next levels to keep an eye on include $0.60 and $0.50.


On the top end, a climb back above $0.75 may stabilize prices somewhat. But to end the downtrend, NMC/USD will need to break $0.80. Don’t forget to pay attention to the important bitcoin levels at $300 and $335. A BTC breakout above $335 will have a positive influence across all altcoins, while a break below $300 may intensify the current cryptocurrency downtrend.

Due to the holiday season, the next article will be posted on January 6th. Happy New Year everyone!

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.

Latest from Cryptocurrencies

Bitcoin Cash Analysis: Promising Resistance Breakout Cryptocurrency Prices Rise on SEC Rumours Market Analysis: Bitcoin Sets September High BTC/USD Analysis: Bulls Lose Progress Amid SEC Defeat Bitcoin Trading Volumes Fell to a Minimum of 4 Years

Latest articles


Top 5 Stocks to Watch in October: Bank on the Backfoot, No Thirst for Coca-Cola, Tech Giant Takes Dip and Electric Vehicle Volatility

October is here, and as the markets enter a new month, we take a closer look at five stocks that could be of significant interest to investors. 1) Bank of AmericaBank of America stock has taken a dive over the

Forex Analysis

Market Analysis: The American Currency Resumes Growth

The beginning of October turned out to be favourable for continued growth in the US dollar. From the data published yesterday, it follows that in September, the US manufacturing business activity index (PMI) rose to 49.0 against the forecast

Forex Analysis

EUR/USD Analysis: The Rate Updates Its Multi-month Low

Never in its history has the euro fallen for 11 weeks in a row against the dollar, but it happened. The minimum has been set for 2023. The reason seems to be that in an environment where central banks are

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.