The bitcoin rally has finally awoken the cryptomarket. All of the three altcoins we follow, Peercoin, Namecoin and Litecoin are trading substantially higher. But the largest percentage gains were seen in Bitcoin’s little brother LTC. The altcoin is up by 53 cents or just above 16 percent in the past three days alone. Bitcoin is trading higher as well but not to that extent. Let’s go over this week’s mover first and we’ll get back to BTC later in the article.
Litecoin Rockets Higher
Alternative cryptocurrency Litecoin rallied by over 16 percent in the last three days alone. On the chart below we can clearly see this breakout from that long-lasting congestion area. The repressed altcoin only needed a few hours to break several of resistance levels. But ultimately it stopped right at the December highs of $3.82 dollars per coin. This was another level noted in our previous article.
Both the trend and the momentum are now clearly up. Above the current resistance at $3.82 we have two potential levels at the $4 and $4.50 round figures. These are followed by the former swing high at $4.85, the highest point for LTC/USD during bitcoin’s rally last November. Above here we find the round $5 dollars figure. The important levels on the upside end with last year’s high for LTC at $8.64 dollars per coin.
On the downside, a break below $3.20 dollars would end the current rally. A new downtrend however requires a break of the double bottom at $3.1250 dollars.
Bitcoin Bounces at Highs
Bitcoin bounced at last year’s high on Fxopen. Back in December prices topped out at $460.48 dollars. Today we traded to a high of $461.00 before BTC/USD backed down. Just as a reminder, prices peaked at just over $500 dollars on other exchanges during the November 2015 rally.
Bitcoin has a strong resistance level just above current prices. This is around $461-$465 on Fxopen and $470-$475 on other exchanges. Yesterday BTC hit a high of over $470 on some sites but prices retreated soon after. A decisive breakout of the above mentioned levels may spark a run for the $500 round figure. A break of this important level would intensify the gains.
On the lower end, a move below $420 dollars per coin would end the uptrend. But a new trend lower needs a break below the $410 swing low as well. Important support levels below here include $400 followed by $394 (weak) and $374 dollars per coin. This year’s low is near the round $350 figure, another potential support level.
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 making your money go further 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.