It’s been two good days for the cryptocurrency markets as all major coins set new multi-month highs. Bitcoin broke the June 17th high and rallied to $267.99, a move of more than 5 percent. Meanwhile Litecoin continues its unstoppable run with a gain of 47 percent in 22 hours. But let’s start with big brother first.
Bitcoin Gains 5 Percent
Bitcoin rallied from an open of $246 on Monday to a high of $267.99 today. The move came within striking distance of a previous important swing high at $269.70. We noted this level as a potential resistance figure in our previous BTC article. Bitcoin is currently quoted near the highs at $265.13.
What’s next for everyone’s favorite cryptocurrency? Well like we mentioned above, $5 dollars higher there a resistance level at $270 dollars. This may be the next battleground for the bulls and the bears. If the buyers can successfully clear this level, the door to the important $300 dollars mark will be open. This is a triple top for bitcoin and it put the lid on two previous BTC rallies. If the bulls can create a decisive breakout above the $300 mark, the gains for bitcoin could intensify.
On the lower end, the previous high at $257 dollars may now act as support to falling prices. Lower still, the round $250 mark should also act as resistance. But the key figure for BTC/USD, in terms of the uptrend, will be the $240 figure. A clearing of this mark and a move lower will end the rally.
Litecoin Surges by 47 Percent
Alternative cryptocurrency Litecoin surged higher by 47 percent today. After opening at $3.01 LTC/USD stayed more or less flat until mid-day. Then we saw another massive surge, from $3.03 to a high of $4.42 dollars per coin. The whole 47 percent move took less then 24 hours to complete. Since then Litecoin has given up some of the gains, about 29 cents or so, and is currently quoted at $4.13 dollars.
After a large gain in a short amount of time, it’s hard to make predictions on what may happen next. The trend is still up and the rally will remain in place until the $2.66 swing low is taken out. But caution is advised on the upside due to the large gains seen in the past two days. To extend the move higher, Litecoin may need a helping hand from big brother.
The $4.22 level seemed like a good area for resistance but today’s surge quickly overcame the obstacle. Still, with prices currently below the figure, keep $4.22 on your radar and see how LTC/USD reacts around it. Notable resistance levels higher include today’s high at $4.42, quickly followed by a former swing high at $4.54. Higher still, the round figure at $5 dollars may act as resistance as well.
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.
