Cryptocurrency Technical Highlights:
- Litecoin posted massive gains, still has room to run
- Bitcoin above trend-line resistance, looking for ~11500
- Ethereum trend-line tests arrive between 1000/100
See how traders are positioned in Cryptocurrencies and what it might mean on the IG Client Sentiment page.
Litecoin posted massive gains, still has room to run
Litecoin lit up the board with a 30%+ gain yesterday, and tacking some more on today. On Monday, we made note of key reversals in the cryptocurrency sector, and that they likely pointed to higher prices, but the rally has exceeded short-term expectations.
The break above 210 has the 257/270-area in focus, and if the rally really gains steam resistance beyond that area doesn’t clock in until over 300. At the moment, buying into the up-move doesn’t hold the best risk/reward, but momentum favors longs until we see a strong reversal in this week’s surge.
Want to learn more about cryptocurrencies? Check out this guide, Introduction to Bitcoin Trading
LTC/USD Daily Chart
Bitcoin above trend-line resistance, looking for ~11500
Last week’s reversal in Bitcoin has it now trading above the multi-week trend-line we were focused on and headed towards the apex of the triangle it fell from last month. As we noted the other day, often times extended declines (or rallies) from these types of patterns gets erased at some point.
The apex arrives not far from 11500. Prior to that point, there are a number of daily lows which made up the triangle to be aware of. However, they are not viewed as major resistance until we see a bearish reaction from those lows.
BTC/USD Daily Chart
Ethereum trend-line tests arrive between 1000/100
Ethereum went from leader to laggard, but is still chugging along towards its best levels in a couple of weeks. Resistance clocks in at an under-side trend-line retest from November, then the trend-line off the 1/13 high; these arrive between 1000 and 1100.
ETH/USD Daily Chart
Whether you’re a new or experienced cryptocurrency trader, we have several resources to help you;Introduction to bitcoin trading guide, indicator for tracking trader sentiment, and a weekly webinar discussing the latest developments.
---Written by Paul Robinson, Market Analyst
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