Bitcoin Surges Higher, Litecoin Tests Support

We have a mixed bag this week as Bitcoin climbs higher but its little brother tests support. Bitcoin prices broke the previous swing high at $642 and hit a new high at $656 per coin before falling back. Litecoin on the other hand tested the support at $3.76 dollars. We’ll see how that turned out later on, for now let’s take a look at BTC/USD.

Bitcoin Stalls at $650 After Gains

Bitcoin prices peaked at $656.99 after taking another step higher. Those gains couldn’t be sustained however and soon BTC settled down close to the $650 round figure. We noted this level as potential resistance in our previous article.

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The rally is still underway. To end it the bears will have to push prices back below the $622 swing low. Below here weak support can be found at the breakout point for the current uptrend ($614-$615) but a much tougher support will be the $600 round figure. A decisive breakdown below here could shift the short-trend from up to down.

On the top end, if the bulls manage to peel prices off the $650 mark, we have more resistance at $670 . Higher still $687 and $700 round figure are notable levels as well. All three trends (short-term, medium-term and long-term) for bitcoin are still up.

Litecoin Tests Support

The LTC bears managed to stage an attack on the $3.76 support level. Last week we noted this support as potential trend starter. But the move lower was short-lived, with prices bottoming out at $3.7495 before bouncing hard. The subsequent rally took LTC/USD 3.7 percent higher to a high of $3.8961. We are now quoted somewhat below here at $3.83 per coin.

The strong rejection near $3.76 confirms the validity of this area as support. A decisive break below the $3.7495 low would start a new LTC downtrend. As usual we’re looking for a sustained break, not just a brief shallow spike below the level.

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Close to here we have important support at the $3.69 swing low. This is followed by a support area around $3.50 per coin. A clearing of this area could extend the losses toward $3.22 dollars.

On the upside,  we’re still looking for a break above $3.93 dollars. A clearing of this level could trigger a new uptrend. Conservative traders may want to wait for a break of the $4 round figure as well. Above here we find resistance at the $4.07 swing high, followed by $4.15 and a resistance area from $4.43 to $4.52 per coin. A breakout above here could intensify the gains.

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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