Boom, Boom Bitcoin ?

BTCUSD, Daily

Back in May, Andria wrote that “The next immediate Resistance for the asset is set at October’s Resistance at $8,230 which is also the midpoint between 23.6% and 38.2% Fib…. A clear breach above the $8,230 Resistance as stated above, could open the doors towards 38.2% Fib. level, at $9,500.”

Yesterday (June 26) BTCUSD breached $12,500 and closed in on $13,000, up close to 20% in 24 hours. Overnight, the pair breached $13,300 and the most important of all the Fibonacci levels, 61.8%. It is now up 240% since the start of the year, when the price was languishing down at $4,000. The all-time high from December 2017 remains just shy of $20,000 at $19,500. The common consensus among market participants for the summer jamboree in the crypto-world is the confirmation from Facebook in the last few weeks of their own move into digital currency with LIBRA, JP Morgan claiming that there is clear institutional buying in a report from last weekend and retail investors getting caught in the Fear of Missing Out (FOMO) rally, again. The key Chicago Futures markets also confirm a rise in trading volumes supporting the price rise. Other contributory factors probably include the shift in FED and ECB policy and the rapid rise in other non-yielding assets like the commodity complex (particularly Gold).

However, as ever, volatility remains high, and any parabolic positive movements tend to be followed by an even more significant and rapid decline. Today, BTCUSD currently trades around $11,700 down some 15% from yesterday’s intra-day high. Always manage that risk.

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Stuart Cowell

Head Market Analyst

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