Bitcoin seeing temporary resistance
Bitcoin is slightly lower on Thursday, having stalled in the middle of the week following strong rallies this month.
The 50 fib level—April highs to June lows—is putting up a bit of a fight as resistance, although I don’t think it will keep the crypto bulls at bay for much longer. This rally has some real momentum and I think we’re just seeing some brief profit taking.
We did see the momentum indicators ease around the 50 fib level on the 4-hour chart, but this may just support the profit taking theory and lead to a brief pullback.
We’re not seeing it gather any momentum to the downside although, if it does edge lower, it could see support around $42,500, which is prior support and resistance and the 38.2 fib.
The double top of the 4-hour chart would support this also, with a break of the neckline around $44,640, giving a possible price projection around that 38.2 fib level.
A move through $47,000 will see attention shift to the $50,000-$51,000 region where past support and resistance combines with the 61.8 fib. The psychological factor could also come into play around these big levels.