Cryptocurrencies Stabilize but Downtrends Remain in Place

Cryptocurrencies stabilized across the board since our last update. Bitcoin has retraced some of the losses and is currently trading at the $224 mark. Litecoin has risen about 6 cents from the lows while Namecoin surged higher earlier in the day to a high of $0.461. But let’s start with big brother first.

Bitcoin Retraces $10 Dollars

Everyone’s favorite cryptocurrency retraced $10 dollars since reaching a low of $213.98 on Tuesday. Prices have been rallying for two days now and we are currently quoted at $224.50. Here’s a daily chart outlying the various important levels for bitcoin.

BTCUSDDaily-apr16

Despite the small rally, the downtrend remains firmly in place. To end it, BTC/USD will need to climb back above the $258.52 swing high. On the lower end, the Tuesday low at $213.98 may present some challenges to the bears. But a more important level will be $208, all the way down to $200. The support area around the round figure is the next key number for bitcoin. If the bears can clear the $200 figure and head lower, the BTC losses could intensify.

Litecoin Gains Back 6 Cents

Litecoin gained back about 6 cents since reaching its low of $1.3096 two days ago. Bitcoin’s silver is currently trading at $1.3760 per coin.

LTCUSDDaily-apr16

Litecoin is in the same boat as bitcoin. Despite the gains so far, the downtrend remains to the downside. To end it, LTC/USD will need to rally back above the $1.66 mark. Important levels on the lower end include the $1.30 swing low reached on Tuesday. This is quickly followed by the $1.25 figure. Lower still, the $1.05 number is this year’s low for LTC and will likely be major support on the way down. A break below the $1 dollar parity level could intensify the losses for Litecoin.

Namecoin Spikes to 46 Cents

A brief update on Namecoin. The alternative cryptocurrency briefly spiked above the $0.424 swing high. But prices couldn’t remain high for long and in less then 1 hour, NMC/USD was back below the $0.40 mark. We are currently quoted at $0.369 per coin.

NMCUSDDaily-apr16

While the brief surge above doesn’t classify as a break of the resistance levels, cautioned should be exercised. We need to let things play-out to see if the spike higher was merely the result of stop hunting on weak volume or a major change in investor sentiment. The notable support levels below here include the $0.30 mark, quickly followed by the new low at $0.274. On the high end, the previous low of the range at $0.40 may now act as resistance. This is followed by the half-parity mark at 50 cents and the high of the range at $0.55.

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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