Bitcoin Hits $408 as Crypto Rally Continues

Bitcoin’s rally continues and we are now in the fourth day of straight gains. After yesterday’s move up from $367 to $382, today BTC/USD briefly broke the $400 round figure to hit an interim high of $408.20 per coin. We are currently trading somewhat weaker at $392.01.

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More gains are likely going forward. The levels to watch on the high side are $400, followed by the post-PayPal high at $446 ($450 really). Further up the psychological round figure at $500 may provide some resistance. This is followed by the August 21st swing high at $530.

On the lower end, the $343 figure is the number to watch. Bitcoin prices skirted right above the $343-$350 support area for several days before catapulting higher. A move lower should give the bulls some pause. Below this, the $300 round figure may provide some support. Lower still, we find two more potential support levels, the October 5th swing low at $285 quickly followed by $266. The $266 level was the high during most of 2013 and will be the key number to watch on the downside. A break below may lead to prolonged losses for bitcoin.

Litecoin Clears $3.95 Resistance

Alternative cryptocurrency Litecoin cleared the $3.95 level mentioned in our previous article. The move up was greatly helped by bitcoin’s rally however, as the first test above $4 per coin only went as high as $4.06 before reversing. As the BTC/USD rally intensified in the last two days, we saw LTC/USD follow suit and break $3.95 again and then move all the way up to $4.22 before falling back. We are currently trading at $4.10.

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The rally in LTC prices may continue but it will be highly dependent on what bitcoin does going forward, as we have seen in the last few days. Potential resistance levels on the way up include $4.50 and $4.66, followed by the round figure at $5 dollars per coin. On the lower end, LTC/USD is now sitting on a strong support area that goes all the way down to $3.95 and includes the $4 round figure and the weak support at $4.10. A clearing of these levels may lead to an end in the LTC/USD rally.

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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