Cryptocurrencies Stabilize but Downtrends Remain in Place

FXOpen

Cryptocurrencies stabilized across the board since our last update. Bitcoin has retraced some of the losses and is currently trading at the $224 mark. Litecoin has risen about 6 cents from the lows while Namecoin surged higher earlier in the day to a high of $0.461. But let’s start with big brother first.

Bitcoin Retraces $10 Dollars

Everyone’s favorite cryptocurrency retraced $10 dollars since reaching a low of $213.98 on Tuesday. Prices have been rallying for two days now and we are currently quoted at $224.50. Here’s a daily chart outlying the various important levels for bitcoin.

BTCUSDDaily-apr16

Despite the small rally, the downtrend remains firmly in place. To end it, BTC/USD will need to climb back above the $258.52 swing high. On the lower end, the Tuesday low at $213.98 may present some challenges to the bears. But a more important level will be $208, all the way down to $200. The support area around the round figure is the next key number for bitcoin. If the bears can clear the $200 figure and head lower, the BTC losses could intensify.

Litecoin Gains Back 6 Cents

Litecoin gained back about 6 cents since reaching its low of $1.3096 two days ago. Bitcoin’s silver is currently trading at $1.3760 per coin.

LTCUSDDaily-apr16

Litecoin is in the same boat as bitcoin. Despite the gains so far, the downtrend remains to the downside. To end it, LTC/USD will need to rally back above the $1.66 mark. Important levels on the lower end include the $1.30 swing low reached on Tuesday. This is quickly followed by the $1.25 figure. Lower still, the $1.05 number is this year’s low for LTC and will likely be major support on the way down. A break below the $1 dollar parity level could intensify the losses for Litecoin.

Namecoin Spikes to 46 Cents

A brief update on Namecoin. The alternative cryptocurrency briefly spiked above the $0.424 swing high. But prices couldn’t remain high for long and in less then 1 hour, NMC/USD was back below the $0.40 mark. We are currently quoted at $0.369 per coin.

NMCUSDDaily-apr16

While the brief surge above doesn’t classify as a break of the resistance levels, cautioned should be exercised. We need to let things play-out to see if the spike higher was merely the result of stop hunting on weak volume or a major change in investor sentiment. The notable support levels below here include the $0.30 mark, quickly followed by the new low at $0.274. On the high end, the previous low of the range at $0.40 may now act as resistance. This is followed by the half-parity mark at 50 cents and the high of the range at $0.55.

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*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.

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