Tanya Abrosimova
Independent Analyst
- BTC/USD smashed important resistance to trade at $8,500.
- Crypto market faces internal resistance and outside hurdles.
Bitcoin is mostly unchanged since the start of the day, though the digital coin No. 1 has gained nearly 3% within recent 24 hours. Positive sentiments returned to the cryptocurrency market. On Sunday, Bitcoin managed to break an important resistance area at $8,400-$8,425, created by 50-DMA and 38.2% Fibo retracement of the decline from $11,567 to $6,483. The breakthrough increased positive momentum allowing the price to touch $8,600 for the first time since May 15. Currently, BTC/USD is trading at $8,500 amid rising trading volumes.
Meanwhile, investors are deeply disappointed by lack of positive vibes from Consensus2018. Even Fundstrat's Tom Lee had to admit that his optimistic forecast of Bitcoin rally after the conference was wrong as the industry"faced significant internal resistance and hurdles within traditional financial institutions"
"CRYPTO: #Consensus2018 rally did not happen, very disappointing. What we needed was a trifecta of progress: (i) institutional custody/tools; (ii) buy-in by banks/investment managers; (iii) regulatory clarity (3 of 3 needed), but we got progress on (i) and (ii)," he wrot in his Twitter account.
Despite the above, Lee still expects Bitcoin’ to finish the year at $25,000.
Bitcoin's technical picture
Technically, BTC/USD is trading above all intraday MAs, which makes the picture look bullish. The coin needs to stay above $8,400 to retain short-term positive momentum. Otherwise, the sell-off may be extended towards $8,000 handle with the next target at $7,683 (23.6% Fibo). The upside is capped by Sunday's high at $8,600. Once this level is cleared, the focus will shift onto $8,800. This area capped the recovery in the middle of May. The ultimate bullish goal is $9,000.
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