- Bitcoin recovered gracefully above $6,700 but bears capped the gains below $6,800 critical resistance.
- “I do think in 2018, trading has shifted. I do think hedge funds are playing a role right now,” Tom Lee said while on CNBC.
Bitcoin has been correcting higher after recovering from the declines that occurred mid-last week around $6,250. There was a hurdle at the 23.6% Fib level with the last drop from $6,780.90 to a low of $6,292.67 around $6,410.18. However, a breakthrough above the critical resistance at $6,500 gave the bulls a boost above $6,700 but the trend stalled short of $6,800 forming highs of $6,780.90.
In other news, one of the most respected analysts in the industry and the co-founder of Fundstrat, Tom Lee recently said while appearing on CNBC that his company is still confident that Bitcoin will hit $20,000 before the year ends. He went ahead to compare Bitcoin price performance to the emerging market charts found on the S&P 500 index. Lee said that the crypto and the emerging market have both been experiencing a downtrend following the uptrend at the beginning of the year. He stated in regards to both markets:
“Until emerging markets begin to turn, I think in some ways that correlation is going to hold and tell us that sort of the risk on mentality is those buyers aren’t buying Bitcoin.”
Tom Lee also believes that hedge funds do have significant role in the crypto market:
“I do think in 2018, trading has shifted. I do think hedge funds are playing a role right now.”
In the meantime, Bitcoin price is trading at $6,703 although it has recorded intraday highs of $6,731.54. The price has been correcting lower from the weekend high at $6,787.90. The bullish trendline has and still is a significant support. The initial support is at the 50SMA (15’ chart) currently highlighted at $6,692.31 and the second support is the 100SMA on the same chart currently at $6,687.33. The trend is, however, still bullish with the MACD in the positive region of the 0.0 mean line. Other support targets further down include $6,640 and the 61.8% Fib level at $6,600.
BTC/USD 15-minutes chart
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