Bitcoin – Bullish momentum remains

Profit-taking possible in the near-term Bitcoin has been on an incredible run recently, one that may not come as a surprise to some, but that also begs the question, how much further can it go? It has run into some resistance on approach to $60,000, a notable psychological resistance level and one that falls just ahead of the all-time high. So it’s not surprising that we’re seeing some resistance around these levels. And while it may have plenty of momentum longer-term, near term indicators suggest it may be running a little thin. Perhaps the psychological barrier is proving a big test. Even if it runs into resistance here, the daily chart suggests there’s plenty of momentum in the rally so a test of the record highs may not be far away and after that, it will get a lot more interesting. A move below $53,500 may trigger a larger correction in the near term but given the recent trend, support may not be that far away, with the first real test then coming around $50,000. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts. Latest posts by Craig Erlam (see all)

Bitcoin – Bullish momentum remains

Profit-taking possible in the near-term

Bitcoin has been on an incredible run recently, one that may not come as a surprise to some, but that also begs the question, how much further can it go?

It has run into some resistance on approach to $60,000, a notable psychological resistance level and one that falls just ahead of the all-time high. So it’s not surprising that we’re seeing some resistance around these levels.

And while it may have plenty of momentum longer-term, near term indicators suggest it may be running a little thin. Perhaps the psychological barrier is proving a big test.

Even if it runs into resistance here, the daily chart suggests there’s plenty of momentum in the rally so a test of the record highs may not be far away and after that, it will get a lot more interesting.

A move below $53,500 may trigger a larger correction in the near term but given the recent trend, support may not be that far away, with the first real test then coming around $50,000.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

Latest posts by Craig Erlam (see all)