Bitcoin Edges Closer to Upside Breakout

Bitcoin is ending closer to a breakout on the upside. Since our last update, BTC/USD advanced by $4 dollars, or just below 2 percent. Litecoin on the other hand has traded mixed and is still stuck at the $3 dollar handle.

Bitcoin Edges Closer to Breakout

Bitcoin is edging closer to an upside breakout. The bulls have managed to string together several days of gains, pushing BTC almost 2 percent higher. The chart below shows the slow moving but steady march higher since September 22nd.

BTCUSDDaily---oct6

Still, despite the gains, bitcoin is yet to surpass the top of the range at $245.80. Furthermore, even if the bulls manage to break this level, right above it we find an even more important resistance at the round $250 figure. As repeated numerous times, this level was the starting point for both the latest rally and the latest sell-off. The conservative approach calls for waiting until this level is cleared. Higher up, important resistance can be found at $269 dollars. A move above here should intensify the gains.

On the downside, the lower bound of the range stands at $220 dollars per coin. A clean break below should start a new downtrend. Right below this level we find another support at the swing low of $216 dollars, followed by the previous double bottom of $210. The notable levels on the downside end with the August swing low at $192.55 and this year’s low at $162 dollars per coin.

Litecoin Still Around $3 Dollars

Alternative cryptocurrency Litecoin is still trading around the $3 dollars figure. We are currently quoted at $3.02, only 2 cents or 0.66% higher compared to last week. Given the volatility present in the crypto-market, this is a negligible move.

LTCUSDDaily-----oct6

Similarly to big brother bitcoin, Litecoin is also stuck in a range, albeit with a bullish bias. In the past hour we’ve seen LTC/USD advance from $3.00 to $3.0236. At the same time bitcoin jumped from $240 to $243. There is definitely some bullish momentum higher. But it remains to be seen whether this will translate into a full-blown rally.

For Litecoin the line in the sand is at $3.12-$3.18 area. During the past few weeks, prices already tested the $3.12 handle twice, trading as close as $3.1241 in the first and $3.1223 in the second attempt. With each attack on the level, the odds increase that we will get a break higher. The problem is that, similarly to bitcoin, right above the top of the range we find another important resistance at $3.18. A decisive breakout above $3.19 may be needed to start a new LTC rally.

On the lower end, the low of the range is at $2.50. But just 10 cents below here we find another important support at $2.40 dollars per coin. The bears will have to clear this figure as well to establish a durable downtrend.

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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