Cryptocurrencies Rally but Doubts Remain


Cryptocurrencies rallied across the board yesterday, bid up after bitcoin broke out above the $226 swing high. Litecoin gained over 10 percent, Namecoin is up by 6.9% and Peercoin moved higher by 3 cents, from $0.30 to $0.33. But will the rally last? Altcoins say no as all three major currencies (LTC,NMC and PPC) have yet to break their previous swing highs.

Coinbase Raises $75 Million

The reason why the rally is more pronounced in BTC/USD may be due to the Tuesday announcement that bitcoin payment processor Coinbase raised $75 million. This is the biggest amount raised in a single funding round by a cryptocurrency firm. It puts the implied valuation of Coinbase at a large $400 million dollars. But what’s even more impressive is the list of investors that include the New York Stock Exchange, USAA and BBVA Bank as well as former Citigroup CEO Vikram Pandit and former Thomson Reuters CEO Tom Glocer.

Bitcoin breaks $226 but will the rally last?

On the technical front, despite yesterday’s breakout, bitcoin is still in a medium and longterm downtrend. This is why caution should be exercised on any long positions. Furthermore, after the break we only rallied by about $7 dollars to a high of $233.80.


The important $266 mark will likely continue to have relevance going forward. If BTC prices can stabilize above it, we may see a rally on the upside toward the round $300 figure. On the downside, there is some weak support at the congestion’s area lower bound of $192 but the real number to watch is the January 15th swing low at $162. A bitcoin fall below here may lead to more losses.

Litecoin Fails to Break Previous Swing High

Alternative cryptocurrency Litecoin failed to break its previous swing high at $1.4720. We are currently quoted at $1.41 flat.


What are some of the notable LTC support/resistance levels? On the upside, the area from the swing high at $1.47 to the $1.50 round figure may act as resistance to any move up. On the downside, the January 15th swing low at $1.05, followed by the $1 parity level, should act as support to falling prices. But LTC is in the same boat as BTC. There is a large risk that any weaker rallies will be met with selling pressure. To spark a sustainable rally, LTC prices may need to move much higher, preferable over $2 dollars per coin. Like we always say, whenever trading altcoins keep an eye on BTC. Bitcoin’s $266 mark will be important to watch, a stabilization above here will have a positive influence across the crypto spectrum.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — 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 Finds Support: Will It Last? Bitcoin Price Losing Correlation with Stock Market Kiyosaki Predicts: Bitcoin at $350k in August 2024. Realistic? The Price of Ethereum Rises Ahead of SEC Decision Bitcoin Price Hits a Month's High, Breaking Key Resistance

Latest articles

Weekly Market Wrap With Gary Thomson: Nasdaq 100 Index, GBP, SNB Interest rate, Brent Crude Oil
Financial Market News

Weekly Market Wrap With Gary Thomson: Nasdaq 100 Index, GBP, SNB Interest rate, Brent Crude Oil

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • Nasdaq 100 Index Reaches
Analytical META Stock Predictions for 2024, 2025-2030, and Beyond
Trader’s Tools

Analytical META Stock Predictions for 2024, 2025-2030, and Beyond

Meta Platforms, Inc., formerly known as Facebook, is a leading technology company renowned for its social media and virtual reality innovations. This article provides a detailed analysis of Meta's stock performance, future analytical projections for 2024 to 2030, and the


Natural Gas Price: Bullish Trend Weakens

Forecasts of a hotter summer, published during April and May, led to a sustained bullish trend in the natural gas market, as this commodity is heavily used for air conditioning.

→ The XNG/USD chart indicates that from 1st April

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.