More Gains for Bitcoin as Rally Marches On

Another good week for bitcoin as prices surge higher by $67 or just above 10 percent. Its little brother Litecoin is not doing as great however and is still fighting with the $4 resistance area. As usual we’ll start with bitcoin and go back to LTC later in the article.

Bitcoin Rally Hits $720

The bitcoin rally continues unabated as prices reached a new high at $720 today. But the road to here from last week’s print at $650 wasn’t smooth, as the chart below shows.

btcusdh4-nov1

Last week we said that if the bulls manage to peel prices off the $650 mark, we have more resistance at $670 followed by $687 dollars .” The initial surge higher took BTC/USD to $686.899 (very close to the $687 resistance) but from here take-profit selling crashed prices down to the $670 mark. In a classic resistance-becomes-support, the $670 figure managed to hold the bear attacks and soon we were back to rallying higher.

Above current prices resistance can be found at $744 dollars (this year’s high on Fxopen), closely followed by the $750 round figure. But a much stronger resistance will be the multi-year high printed on other exchanges this year near the $800 handle.

On the lower end, the previous resistance levels at $650, $670, $687 and $700 should now act as support to falling prices. A decisive break below $640 would end the current short-term uptrend. Looking at the longer-term charts, bitcoin is trending higher on the weekly and the monthly as well.

Litecoin Fighting With $4 Resistance Area

Alternative crypto-currency Litecoin is still fighting with the $4 resistance area. Initially prices rallied as high as $4.03 on October 27th, only to be met with heavy selling. Two days later a second attempt was made with LTC peaking at $4.06 before retracing back below the $4 round figure.

ltcusddaily-nov1

We’re currently quoted at $3.979 dollars per coin, meaning that the second bull attack was repelled as well. But the constant pushing on the highs and bitcoin’s bullish momentum could soon lead to a breakout higher. Conservative traders may want to wait for prices to clear the swing high at $4.07 before jumping in. As usual with these levels we’re looking for a sustained break, not just a brief shallow spike above the level.

If this resistance area is cleared, more levels can be found at $4.15, followed by a resistance area from $4.43 to $4.52 per coin. A breakout above here could lead to more gains. On the downside, a decisive break below the $3.7495 low would start a new downtrend.  Notable support below here include the $3.69 swing low, the area around the $3.50 round figure and $3.22 per coin.

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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