Bitcoin Hits Multiday Highs but $300 Remains Key

Everyone’s favorite cryptocurrency hit new multi-day highs at $240.44 today. This is above the previous BTC swing high reached on January 30th at $234.99. Other altcoins followed suit but many were unable to break higher and remain locked in a range. But despite bitcoin’s gains today, the $300 round figure continues to be key in the battle to generate a new rally.

Bitcoin Hits $240 but Key $300 figure Far Off

After peaking at $240.44 today, BTC/USD fell back and is currently quoted at $236.48. The lack of follow-through after the break of $235 should worry the bulls. We already saw one failed attempt to break out of the range on the low side. Two days ago BTC fell to a low of $208, below the previous swing at $212. But prices quickly reversed to close slightly up on the day at $225. Today that move up continued to $240. There is a chance that the bulls may get trapped in a similar manner as the bears did below $212.

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The congestion area is still new and the possibility of false breaks is substantial. To generate a sustainable rally, bitcoin will need to stabilize above the $300 round figure. A spike above $305 per coin may accomplish the same result. On the low end, the ”key figure” is $162, the swing low reached during the January downtrend. A move below here may restart the move lower.

What are other potential support/resistance levels? On the upside we have $250 and $266. Above $300 the $335 swing high may act as resistance. On the downside, the swing low at $208 and the $200 round figure may act as weak support. Below here, the $192 swing low is another level to keep track of. But the two key figures remain $300 and $162.

Litecoin Still in Range Around 50% Retracement

Alternative cryptocurrency Litecoin is locked in a trading range wrapped around the 50 percent retracement of its recent move up. We are currently trading at $1.85 per coin, just 3 cents above the 50 percent mark at $1.82.

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Litecoin is in a similar boat to Bitcoin. The range is still new and undefined and potential breakout points are far off. To generate a sustainable move higher, LTC will need to clear its January 26th high at $2.40. On the downside, the swing low near parity is  the number to watch. A Litecoin break below $1 will likely lead to more losses. As usual, wherever trading altcoins pay attention to BTC movements and the key bitcoin levels at $300 and $162.

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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