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Bitcoin: Acid test done for now; $5,500 next?

  • BTC crosses past major resistance on the charts.
  • 30-35 pct rally seen in the weeks ahead.
Bitcoin: Acid test done for now; $5,500 next?
Manoj B RawalManoj B RawalIndependent Analyst

Bitcoin, the poster boy of cryptocurrencies is leading from the front in taking all the other coins up and above in its bounce from the trough journey during times that saw prices crash anywhere between 50-95 percent in last 15 months.

BTC/USD up more than 1 percent on day at $4,159 and in about 2 percent range for the day. As reported by this author on Saturday (read here) BTC was on the cusp of a major breakout and it indeed moved up of a key trendline resistance of the 480-minute chart. The targets of this breakout is 35 percent away from the breakout point, which is about $5,500.

That may be too much to ask for after nearly 15 percent rally in last two weeks and there are enough roadblocks in this journey up, wherein it faces first small hurdle around $4,235, then above $4,400 and then a strong one above $4,900 in the form of 200 days SMA while 200 days EMA is placed above $5,100. While all these resistances do their work, overbought RSI would also play crucial role in pulling prices down and consolidating gains.

BTC/USD 480-minute chart:

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Author

Manoj B Rawal

Manoj B Rawal

Independent Analyst

Manoj B Rawal, financial markets professional with about 11 years of experience in writing, editing and advising on stocks, currencies and fixed income.

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