Bitcoin: Some retracement expected

  • BTC loses some momentum, volatility shows some dissipation.
  • Some more loss of momentum expected before resumption of rally.

Bitcoin, the poster boy of the alt coins and the largest cryptocurrency by market capitalisation, has now lost the momentum this week after rallying hard in the prevous week wherein it led the charge from the front.

BTC/USD is trading flat on day at $5,069, a bit below day's high. On the daily chart, as visible, BTC broke out and gave a stupendous rally in the previous week. But now has lost some momentum and is in a consolidation mode. However, it has bounced back exactly from its 23.6 percent retracement mark of this rally from the trough.

In this losing ground, it could head all the way towards $4,700 which is where it has some strong supports in the form of 21 days SMA, then $4,550 - 200 days SMA and $4,576 in the form of 38.2 percent fibonacci retracement.

BTC/USD daily chart:


Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto and our FXStreet Crypto Trading Telegram channel


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.