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Bitcoin breaks out

The pressure was building for Bitcoin to break above the technically-important $4200 level over the past several weeks and today it finally gave way. My colleague Matt Weller had already written about this potential breakout HERE. The breakout gave rise to further follow-up technical buying above this level this morning as a cluster of buy stop orders were triggered from breakout traders and some short sellers were forced to close out their bets. It will be interesting to see if the buyers will now be able to hold their nerve and defend this former resistance level. The next potential trouble area comes in around $5200, a level which was support in the past. We will be monitoring BTC/USD prices for further developments over the coming days to figure out whether this was indeed a genuine breakout or another false hope for crypto bulls, who have witnessed many such price spikes after the bubble deflated violently at the back end of 2017 only for the selling to quickly resume again.  


Source: TradingView and FOREX.com

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