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
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