Bitcoin meets new resistance to start the week

In Insight

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.

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