Can Bitcoin sustain its rally?
Fawad Razaqzada July 18, 2018 11:39 AM
Bitcoin and other cryptocurrencies such as Ethereum and Ripple have risen sharply over the past few days, most notably on Monday and Tuesday. It doesn’t feel like it but Bitcoin has risen nearly 30% from its lowest point in June. Sentiment has been boosted by a number of positive developments including news that BlackRock, the world’s biggest asset management company, is looking to invest in the digital currency. Of course, this is not the first time we have seen such a big rise only for the downward trend to then resume. But could it be different this time? The short answer is that it is far too early to say. Only when Bitcoin makes a distinct higher high can we then talk about a longer-term low.
Still, as a result of the rally, Bitcoin has broken a few levels of resistance which may be an indication that the bulls are regaining some control, at least in the short-term anyway. It is worth pointing out that they also successfully managed to defend the long-term support at 6000 after the bears tried and failed to push it below that barrier on several occasions. Thus, if BTC/USD were to make a higher high now then things could get really interesting. The most recent swing high is still miles away around $9950, which means the bulls have some work to do.
Indeed, there are several resistances that need to be tackled first, starting at $7500 which was being tested at the time of this writing. This level had been support and resistance in the past, so a bit of hesitation to go above it makes perfect sense. An additional level of resistance comes in at around $7800 where an untested broken support meets the top of a triangle pattern.
Meanwhile support comes in at $6800, which is the most recent broken resistance level. Here, we also have the 50-day moving average come into play. Thus, should Bitcoin pulls back to $6800, it is very important that the bulls defend their ground here, otherwise the bearish trend could resume.
Source: TradingView.com and FOREX.com.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.