The cryptocurrencies rally continues for another week. Since our last update, bitcoin renewed the upward momentum but ultimately was unable to clear the $270 dollars level. Meanwhile Litecoin surged higher to $5.63 dollars per coin.
Bitcoin Rejected at $270 Dollars
In the past two days BTC/USD broke the previous high at $269.30 and set a new multi-week high at $272 dollars per coin. But the rally higher failed to clear this level for a second time. The correction seen today tested $260 dollars.
To end the rally, the bears will need to make a decisive push below the $245-$250 support area. This level is marked on the chart above. Further down, more support can be found at the $240 dollars swing low, followed by $230. On the higher end, the $270 dollars level has proven its validity by rejecting two BTC advances. This now becomes the key figure to watch. Any bitcoin rally will need to clear this area to head higher. But if that happens, the door to the $300 dollars mark would be open.
Litecoin Hits $5.63 Dollars
Litecoin hit a new 10-month high at $5 dollars and 63 cents yesterday. With the most recent surge higher, LTC/USD has more then tripled its value from the breakout near $1.60 dollars per coin. But soon after hitting the highs, LTC experiences a sharp 16 percent retracement in only 10 hours. We have since recovered somewhat and Litecoin is currently quoted at $5.11, ”only” 9 percent below the highs.
The recent sharp pullback is significant and may signal more losses, at least in the short-term. This shouldn’t be taken as a call to short LTC however, as the crypto remains firmly in an uptrend. To end the current rally, the bears will need to force prices below the $3 dollars mark. This level ($3 – $3.18) is marked with a yellow rectangle on the chart below.
To renew the momentum higher, the new target for the bulls is yesterday’s high at $5.633 dollars. Above here we find a large resistance area that stretches from $5.89 to $6.18 dollars per coin. This is followed by the $6.566 resistance level.