Cryptocurrencies in Limbo as Year Draws to a Close

FXOpen

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.

BTCUSDH1-dec30

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.

LTCUSDH4-dec30

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.

NMCUSDH4-dec30

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!

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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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