Bitcoin Threatening to Breakout Into A New All-Time High

After making its record high of 7898 over a week ago, the BTC/USD pair plunged into a higher low of 5511. Since then, the market has rallied and is currently threatening to create a new all-time high.

However, a pullback is in order to sustain the ascent. Technical indicators support this view and show that the pair is not yet ready to make the next move up. The ideal situation is for the market to retreat to the levels of 6972 – 6781. This slight correction enables buyers at the level of 5511 to take profits and in turn create a new batch of bulls who would most likely hold onto their positions.

Knowing the market’s history, however, there’s a very good chance that the bulls become even more aggressive and push the market higher. If this is the case, wait for the market to break the resistance at 7474 with volume of at least 170 million to validate the move. This will push the pair to 9067.

Summary of Strategy

Buy: Correction from 6972 – 6781 OR breakout at 7474 with volume of 170 million

Support: 6972 and 6781

Target: 9067

Stop: If the market breaches 6781 as next reliable support is 6312

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.