Cryptocurrencies rallied across the board yesterday, bid up after bitcoin broke out above the $226 swing high. Litecoin gained over 10 percent, Namecoin is up by 6.9% and Peercoin moved higher by 3 cents, from $0.30 to $0.33. But will the rally last? Altcoins say no as all three major currencies (LTC,NMC and PPC) have yet to break their previous swing highs.
Coinbase Raises $75 Million
The reason why the rally is more pronounced in BTC/USD may be due to the Tuesday announcement that bitcoin payment processor Coinbase raised $75 million. This is the biggest amount raised in a single funding round by a cryptocurrency firm. It puts the implied valuation of Coinbase at a large $400 million dollars. But what’s even more impressive is the list of investors that include the New York Stock Exchange, USAA and BBVA Bank as well as former Citigroup CEO Vikram Pandit and former Thomson Reuters CEO Tom Glocer.
Bitcoin breaks $226 but will the rally last?
On the technical front, despite yesterday’s breakout, bitcoin is still in a medium and longterm downtrend. This is why caution should be exercised on any long positions. Furthermore, after the break we only rallied by about $7 dollars to a high of $233.80.
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