Bitcoin Holds on, While the Litecoin Rally Kicks in Again

Bitcoin reversed Tuesday’s losses with interest on Wednesday, gaining 10.5% to end the day at $9,395.83.

While Bitcoin moved in the shadows of Litecoin through the day, it was an important move, with the Cboe Bitcoin futures market having pinned Bitcoin back of late.

Bitcoin managed to outperform Bitcoin Cash on the day, in spite of speculation that Bitcoin Cash could ultimately take over Bitcoin as an alternative to fiat money.

A lack of regulatory news chatter through the day certainly contributed to Bitcoin moving through its first two major resistance levels on the day.

Breaking through $10,000 was a step too far however, with Bitcoin having last touched $10,000 levels at the beginning of the month.

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At the time of writing, Bitcoin was up 2.62% to $9,740, with Bitcoin having hit an intraday high $9,778.66 early this morning.

A bullish trend formed in the morning and, with Bitcoin dominance hitting 35%, there has been building support for the crypto in spite of more broad based gains seen across the major cryptocurrencies on Wednesday.

Moving through $10,000 may be quite a test however, with Bitcoin currently facing its first resistance level at $9,772. A break through to $9,850 would support an attempt at $10,000, though investors may look to lock in gains and wait for the next rally, particularly with Bitcoin up 20.6% since Monday’s open.

Adding to the tug on Bitcoin will be the Cboe Futures Bitcoin March contract, which is sitting at $9,710, up $440 for the day. This week’s moves have been driven by the cryptomarket rather than the futures market, but we continue to expect some influence from the futures market.

For the day ahead, any sideways moves could see Bitcoin fall back to $9,500 levels, though we would expect support to kick in well before its first major support level of $8,762, with sub-$9,000 levels an unlikely end to the day.

The good news for the Bitcoin Bulls will be the fact that money is coming back to the table and it’s getting its fair share, with Bitcoin’s market cap now up to $163.8bn, recovering from last week’s $103bn low.

Elsewhere, Litecoin’s shadow gets every larger, with Litecoin up 10.30% to $233.67, while Ethereum continues to struggle to recapture $1,000 levels, up just 1.5% to $934.19 at the time of writing.

For Litecoin, the market will need to see whether the recent rally was as a result of the announced launch of LitePay or as a result of the Litecoin Cash fork talk. If it’s the latter, the broader market could fall foul of a sell-off, as the news would be considered as yet another market manipulation that will likely garner even greater attention from regulators and governments.

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