Bitcoin meets new resistance to start the week

In Insights

Early last week, Bitcoin showed signs of bull momentum with a USD200 rally up to the USD6,550 area. Since then, the bulls have lost momentum and Bitcoin has once again broken an area of support at USD6,400, a level that was tested and held a number of times in the last weeks of October.

Earlier today, Bitcoin registered a large green candle after wicking down to USD6,280. It then experienced a heavy rejection at USD6,400, and it appears this former support level has shifted into a resistance role for the time being.

Many eyes were on Bitcoin Cash this past week. Following a 4-Wave completion on the 4-hour chart resulting in a 40% increase in price, BCH finished Wave 5 over the course of the week with a high of USD648.

Since then, BCH has retraced 21% down to the 0.618 fibonacci level. In most cases, a heavy retrace like this could be a signal to enter a short-term long position. However, with Bitcoin Cash’s impending contentious hard fork, most traders are choosing to stay out for now.

This content is not financial advice and should not form the basis of any financial investment decisions nor be seen as a recommendation to buy or sell any good or product. Trading cryptocurrency is complex and comes with a high risk of losing money, particularly if you trade on leverage. You should carefully consider whether trading cryptocurrencies is right for you and take the time to learn how trading works and decide how much money you are prepared to lose.

WRITTEN BY

Liquid

Providing liquidity for the crypto economy.