Big brother bitcoin continues to trade in a range. After several days with tentative gains, BTC/USD fell by $5 dollars yesterday. Litecoin on the other hand, surged 30 percent on Friday so let’s start with that.
Litecoin Surges 30 Percent
Litecoin surged 45 cents on Friday, or about 30 percent The crypto staged most of the gains in only 3 hours, after breaking the previous swing high at $1.60. Prices rallied by 2.4%, 4.9% and 13.52% in each of the three hours, hitting a high at $1.93 dollars. We have since eased up somewhat with LTC trading at $1.80 dollars per coin. Here’s a daily Litecoin chart. The massive move on May 22nd is clearly visible.
With LTC now firmly in an uptrend, let’s take a look at some levels. On the lower end, weak support can be found around the March 23rd swing high at $1.7961, so $1.80 basically. Prices have been trading back and forth, above and below this level, for the past four days now. Below here, more weak support levels can be found at $1.70 and $1.60. The former resistance at the $1.50 round figure should now act as support to falling prices. The bears will need to push LTC/USD below this mark to end the current uptrend.
On the higher end, we have three potential resistance levels bunched up around the $2 dollars mark. First there is Friday’s high at $1.93. This is followed by $2 dollars itself and ends with $2.05, a former swing high and resistance level. The LTC gains should accelerate if the bulls manage to clear this resistance area and push above $2.05 dollars per coin.
Bitcoin Still Range-bound
Unlike it’s little brother, bitcoin is still in the doldrums. The brief upward momentum disappeared with yesterday’s losses. To spark a new rally, prices need to clear the important $250 dollars mark. If this occurs, the first, albeit weak resistance level, can be found at $258 (April 6th swing high). This is followed by a somewhat stronger resistance at $270. Higher up, the triple top at $300 dollars per coin will be crucial. A breakout above it should accelerate the gains. You can see all of these levels marked on the chart below.
On the lower end, the first weak support is at $230. This is followed by the double bottom near $210 dollars per coin. As we’ve mentioned previously, the area from $200 to $210 should be viewed as one support area. The bears will need to push prices below $200 dollars per coin to spark a new downtrend.
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 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.