Bitcoin prices spiked on FXOpen today, reaching a high of $243.71 before falling back. Somewhat surprisingly, the move higher was muted on other BTC exchanges. Most of them topped out near $230 per coin. Alternative cryptocurrency Litecoin bounced off the $1.46 mark and headed lower, staying in a downtrend.
Bitcoin Spikes to $243
Prices on FXOpen spiked to $243 per coin today. What’s even more perplexing about this move is that it happened in under one hour. Bitcoin rallied from $224.40 to $243.71 in only 45 minutes. FXOpen uses BTC-E prices. We still don’t have a satisfactory explanation about the spike. Several theories have been floating around, ranging from panic buying by Russians ahead of a potential ban to a hacked account on BTC-E.
Until we get more clarity on the matter and prices on BTC-E stabilize, it would be prudent to stay on the sidelines. Prices on BTC-E continue to trade at a premium of about $3 dollars, with FXOpen quoting $228 compared to $225 for the wider market. The usual state of affairs has BTC-E trading $2-$3 below other bitcoin exchanges. On other BTC to USD exchanges, prices never reached the highs seen at BTC-e so there Bitcoin remains in its downtrend. However a BTC/USD rally above $240 on other exchanges will likely mean an end to the downtrend. To continue the move lower, bitcoin will need to clear the round $200 figure.
Litecoin Bounces Off $1.46
Litecoin bounced off the $1.46 resistance level. In our article last week we highlighted $1.467 as potential resistance. Today the altcoin hit $1.466 before falling back over 6 percent to $1.35. We are currently trading not far from the daily lows at $1.375.
Technically Litecoin remains in a downtrend. The bounce at $1.467 confirms the importance of this level. A Litecoin rally above it will likely mean an end to the downtrend. On the lower end, the double bottom near $1.30 per coin should offer some support. A clearing of this area may lead to an attack of this year’s low at $1.05. The area from the parity level ($1) t0 $1.05 is another important support area. A break below the $1 dollar mark may lead to more LTC losses.