Tanya Abrosimova
Independent Analyst
- Cryptocurrency market is sidelined with a downside bias.
- Bobby Lee expects strong growth in the long run.
Bitcoin bulls hit a pause button during the weekend as the digital coin No.1 retreated after a sharp rise and settled around $6,700 handle, mostly unchanged both on a daily basis and since the beginning of Monday. BTC/USD is changing hands at $6,670 at the time of writing.
From the longer term point of view, the upside is capped by a strong cluster of resistance levels, including 23.6% Fibo retracement on approach to $6,800. Once it is cleared, the recovery may be extended towards $6,950 with DMA50 and DMA100 on approach.
On the intraday level, the local resistance is created by SMA50 (1-hour chart) currently at $6,690. It is followed by $6,700 and Sunday's high at $6,773. On the downside, the support comes at $6,630, created by Sunday's low. SMA100 (1-hour chart) right below $6,600 is likely to stop the retreat for the time being. However, if this area is cleared, the downside may be extended towards $6,525 (SMA200, 1-hour chart).
Meanwhile, Bobby Lee, co-founder and former CEO of the oldest Chinese cryptocurrency exchange BTCC, came out with another optimistic forecast, saying that Bitcoin will conquer $60,000 handle within recent years.
"When #Bitcoin passes the $60,000 price level in the coming years, it‘ll reach a total circulation value of $1 Trillion. That will be a huge #milestone for $BTC, and it‘ll lead to more price stability, higher global liquidity, and even faster adoption worldwide. #VirtuousCycle", he tweeted.
BTC/USD, the daily chart
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