Cryptocurrencies are entering a state of limbo as the year draws to a close. In the past two days bitcoin has been ranging in a tight $10 dollars area between $307 and $317. Litecoin is also trading flat, stuck between $2.64 and $2.74 per coin. Namecoin has been hovering around $0.71 since Monday, after losing 14 percent last week.
Bitcoin Ranging Between $307 and $317
Bitcoin spent the last two days ranging between $307 and $317. While the bias is undoubtedly down, the momentum lower has been stunted by repeated rejections of $300. The double bottom at $304 continues to be an important milestone for BTC.
A decisive break below $300 should extend the decline towards the swing low at $285. Below here, a break of the $266 mark, the highest high for bitcoin during most of 2013, may usher in a period of longterm BTC losses. On the high end, bitcoin will need to break $335 per coin to sap the strength of the current downtrend. A clean break of $350 may trigger bullish BTC trend, at least in the short-term.
Litecoin Continues to Trade Near Yearly Lows
Alternative cryptocurrency Litecoin continues to trade near its lows for the year. Yesterday we briefly touched a new 2014 low at $2.6385, just slightly below last week’s extreme at $2.6397. We are currently quoted just shy of the lows at $2.6730.
While more LTC/USD losses are likely, we may have to wait for a resumption of the normal trading environment (January 2nd and onward) to see fresh impetus in the pair. A clean break of $2.64, not a brief spike lower like yesterday, should prolong the losses towards $2.50. A breakdown past $2.50 will open the way toward $2 dollars per coin. On the upside, a move above $2.80 should worry the bears. But the downtrend will remain in place as long as prices stay below $3 dollars.
Namecoin Extends Decline to $0.70
After last week’s break of $0.75, NMC extended the decline to a low of $0.705. In our article on Thursday we said ‘’ the break of $0.75 may lead to more losses toward $0.70.’’ With the $0.70 mark now hit, the next levels to keep an eye on include $0.60 and $0.50.
On the top end, a climb back above $0.75 may stabilize prices somewhat. But to end the downtrend, NMC/USD will need to break $0.80. Don’t forget to pay attention to the important bitcoin levels at $300 and $335. A BTC breakout above $335 will have a positive influence across all altcoins, while a break below $300 may intensify the current cryptocurrency downtrend.
Due to the holiday season, the next article will be posted on January 6th. Happy New Year everyone!