Litecoin Rally Ends as Bitcoin Retraces

The last few days saw a general retracement across crypto-markets. Bitcoin retraced $35 dollars or 7.6 percent after making new yearly highs on Fxopen. This prompted Litecoin to fall by a similar percentage and lead to an end of its rally.

Bitcoin Falls 7.6 Percent

Bitcoin fell by $35 dollars after hitting a new high on Fxopen. Prices briefly pierced the previous high of $459.20 to make a new yearly high at $460.48. As we’ve previous mentioned, the yearly high reached on other bitcoin exchanges back in November was closer to $504 dollars per coin.

BTCUSDDaily-dec22

Still, even the $459 swing high on Fxopen proved a formidable resistance as prices fell 7.6 percent to a low of $425 dollars on Monday. Since then BTC/USD has been on a slow and steady climb and we are currently quoted at $440.71 dollars per coin.

Despite the sharp correction, the bitcoin rally is still intact. To end the current uptrend, the bears will need to make a decisive push below the $403 dollars swing low. Right below here we find support near the $400 dollars figure, followed by a weaker level near the $377 swing high.

On the upside, a break above $460 high would reignite the lost upward momentum. A decisive move beyond the round $500 figure may intensify the rally.

Litecoin Rally Ends

The bitcoin correction during the past two days was enough to end the short-lived LTC rally. The altcoin broke the upward sloping trendline on Sunday and proceeded to fall to a low of $3.37 yesterday. While we are currently trading 6 cents above the lows, the sharp retracement experienced earlier was enough to stop the uptrend.

LTCUSDDaily-dec22

To restart the rally, the bulls will need to push LTC/USD above the $3.82 swing high. Above here resistance can be found at $4.00 and $4.50 dollars, followed by the November high for Litecoin at $4.85.

On the downside, the ”number to beat” is $3.26 dollars per coin. A decisive breakdown below this level would start a new LTC downtrend. The first support below here can be found near the round $3 dollars level. This is followed by the $2.88 swing low. Lower still we have more support at $2.70 and $2.50 dollars per coin. The January swing high at $2.40 dollars is another notable level for LTC/USD.

As usual, whenever trading altcoins like Litecoin you should keep one eye on big brother bitcoin. During the past two months it’s been all about the BTC rally. Smaller crypto-currencies usually moved higher when bitcoin rallied and gave up those gains on the BTC retracements. This same dynamic will likely continue going forward.

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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