Bitcoin – Will it hit new highs?

Continuing to push

Bitcoin has been heavily in focus on Tuesday following the launch of the first-ever ETF, a landmark momentum for the cryptocurrency industry.

The fact that the first day of trading of the ProShares ETF on the NYSE came at a time when bitcoin was pushing record highs is probably no coincidence, traders perhaps hopeful that the day would bring extra enthusiasm.

The question then became whether this would become a standard buy the rumour, sell the fact moment with a sizeable correction to follow and that debate is probably still being had.

Bitcoin bulls will probably look at today’s price action with confidence. Price came within a whisker of record highs and remains there at the time of writing, but we haven’t yet seen any significant profit-taking.

And we’ve seen what can happen when the hype around bitcoin builds, the moves to the upside can be explosive. Perhaps that’s still building.

Momentum on the daily chart doesn’t offer much insight, with it flat-lining at best, but the 4-hour chart appears to show clear divergence which could be a red flag. That said, it could quickly change if we move into record territory.

If we do see record highs, where next? It’s anyone’s guess really. We’re in uncharted territory. The next test will come around $70,000 but you know the talk will be about whether we’ll see six figures.

On the downside, $60,000 offers a psychological test, $58,000 more of a technical one. It should be interesting, either way.

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

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
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

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