Today, the crypto space experienced the biggest rally of 2019. The rally was led by Litecoin (LTC) rising as much as 30 percent. By the time Litecoin (LTC) reached a 20 percent increase, other major cryptocurrencies began to have significant rallies as well. It appears this Litecoin (LTC) rally was caused by news that Litecoin (LTC) will be integrating Mimblewimble privacy technology.
Once major cryptocurrencies increased to a critical threshold, a short squeeze was triggered, which rapidly accelerated prices upward. A short squeeze is when short positions are closed in succession, with each short being closed causing the price to rise and forcing other shorts to close.
Bitcoin (BTC) smashed through multiple resistance levels and briefly hit $3,711, but has now pulled back to $3,600. This is still an impressive 7 percent increase on the day. Today an SEC official said a Bitcoin (BTC) ETF would be approved eventually, and this may have helped the rally.
Bitcoin (BTC) is now above the $3,500-$3,600 level where CME futures traders likely took out short positions following the January CME expiration. It remains to be seen if Bitcoin (BTC) can truly hold above this level. In January, Bitcoin (BTC) crossed above the CME short selling level, only to be dragged down below it several days later.
The new resistance level appears to be about $3,700 for Bitcoin (BTC), with support at $3,600. The long term support level continues to be the bear market low of $3,100.
Gains were more impressive earlier in the day when the short squeeze rapidly accelerated prices upwards, and since then, all major cryptocurrencies have declined a bit. The total crypto market cap climbed from $111.5 billion to $122 billion, before declining to $120.5 billion currently.
Overall on the day Ripple (XRP) is up 5.3 percent, Ethereum (ETH) is up 12.8 percent, Litecoin (LTC) is up 24.3 percent, EOS is up 15 percent, Bitcoin Cash (BCH) is up 11.6 percent, Tron (TRX) is up 4.1 percent, Stellar (XLM) is up 6.8 percent, Bitcoin SV (BSV) is up 5.2 percent, Cardano (ADA) is up 10.3 percent, Monero (XMR) is up 11 percent, IOTA (MIOTA) is up 9.5 percent, Dash (DASH) is up 9.5 percent, and Dogecoin (DOGE) is up 5.7 percent.
Notably, Litecoin (LTC) has surpassed the Bitcoin Cash (BCH) and EOS market caps and is now ranked #4 on CoinMarketCap.