⚡Crypto Alert : Start Trading Cryptos with 0 Fees - Click Here

Bitcoin At 38% Retrace Of Bitfinex Sell-Off

Last Thursday wasn’t a good session for Bitcoin bulls. In fact, it was a bit of a disaster. Following fraud allegations from the New York Attorney General’s Office against Bitfinex and Tether, Bitcoin plunged more than $600. Prices eventually rallied to close above the $5000 handle. Today’s action has been tight in comparison, with May Bitcoin futures trading at a key technical level.

38% Fibonacci Level In Play For Bitcoin

When it comes to breakouts and trending markets, the 38% Fibonacci retracement level is a key technical area. It can confirm a trend’s validity or render it moot. In most cases, the 38% Fibo draws heavy two-way action. For May Bitcoin futures, this level is now in play on the 240-minute chart.

May Bitcoin Futures (BTC), Daily Chart
May Bitcoin Futures (BTC), Daily Chart

Overview: The premier level to watch in the May BTC futures market is $5155. While not many retail traders engage CME BTC futures, institutional players do. When Bitcoin breaks out, the move will very likely originate from this area.

So, as long as the $5155 level holds its ground as topside resistance for BTC, then a short-term bearish bias is warranted. In the event it gives way, be on the lookout for prices to return to the $5400-$5500 area.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Avatar
Shain Vernier
US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
Related Articles
🔒 OPEN A TRADING ACCOUNT