Altcoin Market Rout Accelerates as Bitcoin Clears $266

FXOpen

Altcoins have hit new lows across the board today as bitcoin broke the important $266 barrier. Litecoin broke $1.90 and is currently trading at $1.50 per coin. Peercoin cleared the $0.50 mark and is now quoted at $0.33. Even Namecoin, which was trading relatively stronger compared to other cryptocurrencies last week, fell precipitously.

Bitcoin Breaks Important $266 Level

Bitcoin cleared past the important $266 barrier today. Earlier forays below only got as low as $260 and $258. Today’s move lower translated into renewed losses as BTC/USD fell close to $40 dollars to $221 per coin before stabilizing somewhat. Buying one bitcoin will currently cost you $228 dollars.

BTCUSDH4-jan13

Today’s swing low at $221 may present some (very weak) support. Below here, the area near $205 per coin may also present some challenges to the bears. Above, BTC will need to climb back above the important $266 level to end the current downtrend.

BitStamp Restart Doesn’t Help

Even the successful restart of BitStamp didn’t help investor confidence in cryptocurrencies. The struggling exchange was offline since January 5th as they migrated to new equipment after an intrusion into their system allowed a hacker to transfer out about $5 million worth of bitcoins. In a classic ‘’buy the rumor sell the fact’’ traders continued with the selling after BitStamp got back online.

Namecoin Breaks $0.55

Namecoin broke the previous swing low at $0.55 last week. The cryptocurrency then proceeded to lose some more ground, falling below the half-parity level at $0.50 this week.

NMCUSDH4-jan13

Today’s swing low at $0.45 may act as support but keep in mind that the level hasn’t been tested yet so it may prove to be weak. This is closely followed by another potential but untested support at $0.40. Lower still, it’s hard to find new levels to target, it’s been a while since NMC has traded this low. Going back to 2013 I see some support near $0.31 but given how far we are currently from that figure (over 30 percent) Namecoin may find other support in the meantime. To end the current downtrend, NMC/USD will need to climb back above $0.60 per coin. But even more important for Namecoin may be bitcoin’s $266 level. If BTC/USD manages to regain a foothold above $266, it may help altcoins across the board.

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.

*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.

Latest from Cryptocurrencies

DOGE Price Increases by 170% in Less Than 2 Months Bitcoin Price Recovered over the Weekend, But Market Anxiety Remains Correction in Crypto Markets: BTC/USD Rate Drops to $60,000 BTC/USD Analysis: Bears Have Become More Active Near the $70,000 Level Today Is an Ethereum Update. ETH/USD Is Above $4,000

Latest articles

Indices

Although UK-100 Index Is Near All-time Highs, UK Economy Slips into Recession

Technically, a national economic recession is defined as two consecutive quarters of contraction, and yesterday's Office for National Statistics data confirmed that this has happened — UK GDP fell in the third and fourth quarters of 2023 by 0.1% and

Cryptocurrencies

DOGE Price Increases by 170% in Less Than 2 Months

On February 1, 2024, the DOGE/USD rate was = 0.0783. On the last Friday of March, it rose to 0.2150. The rising price means Dogecoin is now the eighth-largest cryptocurrency in the world by market capitalization, overtaking Cardano

Commodities

Market Analysis: Gold Price and Crude Oil Price Gain Bullish Momentum

Gold price started a steady increase above the $2,200 resistance level. Crude oil prices are gaining bullish momentum and might rise toward $85.00.

Important Takeaways for Gold and Oil Prices Analysis Today

· Gold price started a decent increase

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.