Bitcoin looks set for a break higher. In the past 24 hours we’ve advanced by almost 1%, edging closer to the $427 breakout point. Litecoin is trading higher as well although it’s much further away from the top of its range. But let’s start with big brother and we’ll get back to LTC later on.
Bitcoin Poised for a Break Higher?
Everyone’s favorite cryptocurrency looks poised for a break higher. Today a high of $421.08 was hit on Fxopen, about $5 below the $426.24 swing point. As we noted last week, a decisive breakout above this level could start a new BTC rally.
On other exchanges we hit a high just above $426 dollars per coin but we failed short of a breakout. Keep in mind that Fxopen/BTC-E have historically traded at a $2-$3 dollars discount to the general market. So a breakout above $427 would translate into $429 – $430 dollars on these exchanges.
In case this scenario transpires, here are some of the potential resistance levels to the upside. The first weak level is at $440, followed by stronger resistance at $450 and $460 dollars per coin. A clearing of this resistance area could quickly propel us toward the $500 round figure. This was the bitcoin high hit on most exchanges last year, a clean breakout above here could accelerate the gains.
On the lower end we have several weak support levels at $410, $408 and the $404.52 swing low. A decisive clearing of this support area could turn into a new BTC downtrend. Next line of defense for the bulls is at $400, followed by another weak support at $394 dollars. Further down we have more support at $374 and $350 dollars per coin.
Litecoin Still Undecided
Alternative cryptocurrency Litecoin is still trading undecided. After opening at $3.19 we rallied to a high of $3.24 flat before falling back. One coin is selling for $3.22 right now. This is still over 2% below the potential breakout point at $3.31 dollars.
In case of a breakout, the first resistance is at the $3.37 dollars swing high. This is followed by a major resistance is at $3.50 dollars. Higher still we have this year’s high at $3.65 dollars. We end the levels to the upside with the December high at $3.82 dollars and the round $4 dollars level.
On the downside, the key level remains at $3.1250 dollars per coin. A decisive break below this swing low may start a new LTC downtrend. Below $3.12 we have some support at the round $3 figure, followed by a strong area of support around $2.89/$2.90 dollars. A clearing of this area may exacerbate the losses.