The last few days saw a general retracement across crypto-markets. Bitcoin retraced $35 dollars or 7.6 percent after making new yearly highs on Fxopen. This prompted Litecoin to fall by a similar percentage and lead to an end of its rally.

Bitcoin Falls 7.6 Percent

Bitcoin fell by $35 dollars after hitting a new high on Fxopen. Prices briefly pierced the previous high of $459.20 to make a new yearly high at $460.48. As we’ve previous mentioned, the yearly high reached on other bitcoin exchanges back in November was closer to $504 dollars per coin.

Still, even the $459 swing high on Fxopen proved a formidable resistance as prices fell 7.6 percent to a low of $425 dollars on Monday. Since then BTC/USD has been on a slow and steady climb and we are currently quoted at $440.71 dollars per coin.

Despite the sharp correction, the bitcoin rally is still intact. To end the current uptrend, the bears will need to make a decisive push below the $403 dollars swing low. Right below here we find support near the $400 dollars figure, followed by a weaker level near the $377 swing high.

On the upside, a break above $460 high would reignite the lost upward momentum. A decisive move beyond the round $500 figure may intensify the rally.

Litecoin Rally Ends

The bitcoin correction during the past two days was enough to end the short-lived LTC rally. The altcoin broke the upward sloping trendline on Sunday and proceeded to fall to a low of $3.37 yesterday. While we are currently trading 6 cents above the lows, the sharp retracement experienced earlier was enough to stop the uptrend.

To restart the rally, the bulls will need to push LTC/USD above the $3.82 swing high. Above here resistance can be found at $4.00 and $4.50 dollars, followed by the November high for Litecoin at $4.85.

On the downside, the ”number to beat” is $3.26 dollars per coin. A decisive breakdown below this level would start a new LTC downtrend. The first support below here can be found near the round $3 dollars level. This is followed by the $2.88 swing low. Lower still we have more support at $2.70 and $2.50 dollars per coin. The January swing high at $2.40 dollars is another notable level for LTC/USD.

As usual, whenever trading altcoins like Litecoin you should keep one eye on big brother bitcoin. During the past two months it’s been all about the BTC rally. Smaller crypto-currencies usually moved higher when bitcoin rallied and gave up those gains on the BTC retracements. This same dynamic will likely continue going forward.

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.

*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.

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.