Cryptocurrencies rallied across the board yesterday, bid up after bitcoin broke out above the $226 swing high. Litecoin gained over 10 percent, Namecoin is up by 6.9% and Peercoin moved higher by 3 cents, from $0.30 to $0.33. But will the rally last? Altcoins say no as all three major currencies (LTC,NMC and PPC) have yet to break their previous swing highs.
Coinbase Raises $75 Million
The reason why the rally is more pronounced in BTC/USD may be due to the Tuesday announcement that bitcoin payment processor Coinbase raised $75 million. This is the biggest amount raised in a single funding round by a cryptocurrency firm. It puts the implied valuation of Coinbase at a large $400 million dollars. But what’s even more impressive is the list of investors that include the New York Stock Exchange, USAA and BBVA Bank as well as former Citigroup CEO Vikram Pandit and former Thomson Reuters CEO Tom Glocer.
Bitcoin breaks $226 but will the rally last?
On the technical front, despite yesterday’s breakout, bitcoin is still in a medium and longterm downtrend. This is why caution should be exercised on any long positions. Furthermore, after the break we only rallied by about $7 dollars to a high of $233.80.
The important $266 mark will likely continue to have relevance going forward. If BTC prices can stabilize above it, we may see a rally on the upside toward the round $300 figure. On the downside, there is some weak support at the congestion’s area lower bound of $192 but the real number to watch is the January 15th swing low at $162. A bitcoin fall below here may lead to more losses.
Litecoin Fails to Break Previous Swing High
Alternative cryptocurrency Litecoin failed to break its previous swing high at $1.4720. We are currently quoted at $1.41 flat.
What are some of the notable LTC support/resistance levels? On the upside, the area from the swing high at $1.47 to the $1.50 round figure may act as resistance to any move up. On the downside, the January 15th swing low at $1.05, followed by the $1 parity level, should act as support to falling prices. But LTC is in the same boat as BTC. There is a large risk that any weaker rallies will be met with selling pressure. To spark a sustainable rally, LTC prices may need to move much higher, preferable over $2 dollars per coin. Like we always say, whenever trading altcoins keep an eye on BTC. Bitcoin’s $266 mark will be important to watch, a stabilization above here will have a positive influence across the crypto spectrum.