Bitcoin Breaks $5000, Litecoin Joins the Party

Bitcoin continues to make new highs. Last Thursday prices blasted through the key $5,000 level. Litecoin joined the party starting its own uptrend on the same day.

Bitcoin Breaks $5,000 Dollars

Bitcoin broke the key $5,000 round figure with easy on Thursday. During a large two-day short squeeze a new high of $5,870 dollars was hit. Since then we’ve been trading range-bound between the highs and the $5,500 level. We’re currently quoted at $5,572 dollars.

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Naturally the uptrend in prices is still in play. To end it the bears will have to push BTC/USD below the $4,283 swing lows. Above here support can be found at the $4,500 round figure, followed by the $4,681 swing high and the former all-time high on FXOpen at $4,960 dollars per coin. But a much stronger support level can be found higher up at the $5,000 round figure. A decisive break of this level should be cause for worry to the bulls, although it wouldn’t technically end the rally.

Higher up we have resistance at the new all-time high of $5,870 followed by the $6,000 round figure. On the weekly and monthly charts bitcoin is looking bullish as well.

Litecoin Joins the Party

After a prolonged downtrend Litecoin finally joined big brother in an uptrend. Prices broke above the key $57.32 resistance on October 12th and proceeded to hit a high of $70.26 before stabilizing somewhat. Similarly to BTC, the last few days in LTC/USD have been mostly range-bound consolidation. Litecoin is trading at $61.14 dollars right now, over 13 percent off the recent highs.

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Support below here can be found at the former swing lows at $60.55. These are followed by a much stronger support level at the $57.32 breakout point. Lower still we have the $50 round figure as potential support. A break below the $47.85 dollars swing low would both end the current uptrend and start a new downtrend.

On the higher end, we find resistance near the $70 round figure at the most recent swing high of $70.26, followed by $72.36 dollars. Higher still we have a weaker level at the $80 round figure and the $82.91 swing high. On the top side we end the important levels with the all-time high at $93.60 dollars per coin. On the long-term charts we have a mixed picture. While the weekly is still range-bound, the monthly is in rally mode.

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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