Bitcoin is getting close to the yearly highs set on Fxopen at $459.20 dollars per coin. We are currently quoted at $454.80, after trading as high as $457.60 earlier in the day. Meanwhile alternative cryptocurrency Litecoin is still struggling to make noticeable gains.
Bitcoin Nears Yearly Highs
Bitcoin is currently trading $4.40 dollars below the highs set on Fxopen back in November. However the highs on most other exchanges were around $504 dollars per coin. On the chart below we can see that since around November 20th the trend has been up, with very little retracements in between. We only had two major down days and those losses were quickly reversed in the sessions that followed.
Prices seem a bit overextended but it’s rarely a good idea to fight the trend. The $459.20 high may act as resistance on FxOpen but this will likely be a weak one, given that this level is not important for the general market. Above here the $475 figure was where the current rally stalled on December 12th on other USD exchanges. Taking into account the current discount of around $5-$6 dollars, this level corresponds to around $470 dollars on FxOpen. Higher up this year’s high at $504 should be around $500 on Fxopen. A decisive break above here could intensify the rally.
On the lower end, support can be found around the $400 round figure. This is near where Saturday’s crash stopped ($403.21). Below here more support can be found at the $380 swing low. But the rally will remain in place until we get a decisive break below the $370 figure on Fxopen.
Litecoin Struggles to Make Gains
Alternative cryptocurrency Litecoin is struggling to string together some gains. On Friday the altcoin broke the $3.74 resistance noted in our previous article. But the follow-through has been non-existent. After trading as high as $3.82, LTC crashed to a low of $3.45 before rallying back up. We are currently quoted at $3.72 dollars per coin, back below that $3.74 level.
You can clearly see that Litecoin has been dancing to Bitcoin’s tune for the past several trading sessions. This means that if the BTC rally falters, LTC/USD would likely fall quickly. Another thing to note is that bitcoin’s rally has been ongoing for almost 10 days now, since December 6th. Big brother gained $74 dollars or close to 20 percent during this time period.
By betting on more LTC gains you will be (more or less) making a play on a continuation of the bitcoin rally, which is already well underway. Notable resistance levels above can be found at $4.00 and $4.50 dollars, followed by the November high for Litecoin at $4.85. On the lower end, a break below $3.36 dollars would end the currently uptrend.