Bitcoin Bursts Back Above 6,000
Matt Weller, CFA, CMT May 9, 2019 3:49 PM
Most risk assets are selling off on fears of a negative outcome from US-China trade talks, but Bitcoin is quietly defying that trend.
The world’s oldest cryptoasset has rallied nearly 100% from its mid-December lows to regain the 6k handle for the first time since November. More to the point, price is testing a critical zone of previous-support-turned-resistance in the $5800-6100, which put a floor under prices throughout Q2 and Q3 of last year:
Source: TradingView, FOREX.com
As the chart above shows, Bitcoin’s RSI indicator is showing a possible bearish divergence, signaling that buying pressure may be fading as prices test this key level. With prices up nearly 20% in the last two weeks alone, we wouldn’t be surprised to see the cryptocurrency pause or pull back in the coming weeks.
Nonetheless, prices appear to have formed a durable bottom near $3k earlier this year, so traders may favor buying any near-term dips back into the mid- or lower-$5,000s heading into the summer.
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