Small Gains for Bitcoin

Bitcoin has made tentative gains after its breakout last week. We’re currently quoted at $424.70. Bitcoin’s little brother LTC is quoted at $3.20 dollars, down 2 cents since last Tuesday. Litecoin is yet to join the bitcoin lead rally.

Bitcoin Gains 1 Percent

In our previous article we wrote that BTC looked set for a break higher. The breakout did lead to some gains and a high of $428.99 was reached on Saturday. But since then we’ve been trading in a small range between $420 and $429 dollars per coin.

BTCUSDH1-par19

Although there’s a lack of momentum, prices are now in a new uptrend. To end it, the bears will have to push BTC/USD below the April 9th swing low near $410 dollars. A clearing of the support area around $400 dollars per coin would turn the trend from up to down. Potential support levels below here can be found at $394 (weak), followed by more support at $374 and $350 dollars per coin.

On the higher end, we have two weak levels at $429 and $440 dollars, followed by stronger resistance at $450 and $460 dollars per coin. A clearing of this resistance area could propel BTC/USD toward the $500 round figure. This was the high for bitcoin last year (on most exchanges). A breakout above this important round figure resistance could accelerate the gains.

Litecoin Fails to Rally

Alternative cryptocurrency Litecoin has failed to follow BTC in a rally. Here prices have remained in a range, as can be seen on the chart below. We are currently quoted at $3.20 dollars, down by 2 cents compared to last Tuesday.

LTCUSDDaily-apr19

The new potential breakout point stands at the April 15th swing high of $3.26 dollars. A decisive breakout above this level could start a new LTC uptrend. If this happens the first resistance is at $3.31 dollars, followed by the March 11th swing high near $3.37 dollars. A potentially strong resistance can be found at $3.50 dollars. Above it we have this year’s high for LTC/USD at $3.65 dollars. Higher still we have the December high at $3.82 dollars and the round $4 dollars level.

On the lower end, we have some support near $3.16 dollars per coin. But a stronger level is the double bottom at $3.1250 dollars.  A decisive break of this support may start a new downtrend.  Below $3.12 we have some support at the round $3 figure, followed by a strong support area around $2.89/$2.90 dollars. A clean break below this area may exacerbate the losses for Litecoin.

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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