Bitcoin and Litecoin Continue to Push on Resistance Levels

Both Bitcoin and Litecoin are still trading right below their respective resistance levels. For LTC/USD, this level stands at $1.50 while for BTC it’s at $250 dollars per coin. Since our update last week, both cryptos have made unsuccessful attempts to rally higher.

Bitcoin Pushing on $250

Bitcoin continues to push on the $250 resistance level. On Saturday we reached a new 30-day high at $247.07 but soon after the sellers pushed the virtual currency back below $240. We are currently trading at $242 flat on FXOpen.

BTCUSDDaily-may12

As can be seen on the chart above, we have been pushing on the $244-$250 resistance since the start of May, for a full 12 days now. This tilts the odds that the eventual breakout will be to the upside. The successive higher highs and higher lows also point to a bullish scenario. Still, the conservative approach calls to wait for an actual clearing of $250. Notable resistance figures above it include $258 (weak level) and $270. The major resistance level on the higher end will be the round psychological $300 number. This was also the stopping point for two previous BTC rallies. A breakout above $300 should intensify the gains.

On the downside, the first weak support can be found at $230. This is followed by the double bottom near $210 dollars per coin (seen on the chart above). As we’ve mentioned before, the entire area from $200 to $210 should be treated as one large support. We will need to see a break below $200 to spark a new downtrend in prices.

Litecoin Pushing on $1.50

Right as Bitcoin is pushing on $250, LTC is doing the same on $1.50. On Thursday we rallied to a high of $1.4796 but this was met with heavy selling. A renewed push on Saturday reached a new multi-day high of $1.4810. But yet again, the highs were met with aggressive sellers that brought LTC/USD down to $1.4223. We are currently quoted not far from these lows at $1.4340.

LTCUSDDaily-may12

Litecoin is in a similar situation as big brother. While the price action indicates an eventual break higher, caution is advised. Waiting for a breakout above $1.50 should provide the needed confirmation. Important resistance levels above here include $1.60 and $1.70. Higher up we find the the March 23rd swing high near $1.80 ($1.7961). On the lower end, the double bottom near $1.30 per coin should provide some support to falling prices. A clearing of this level may resume the downtrend and lead to more LTC losses.

Petar Kotevski

Petar is a forex trader and writer with 9 years of experience in financial markets. He has been following bitcoin since 2010. A year ago, as the BTC market matured, he started getting more involved by writing articles on bitcoin and other alternative currencies.

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