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Bitcoin (BTC) Tests Daily Support

The past four sessions have brought correction to Bitcoin (BTC). Prices have fallen consistently, breaking beneath $8000. While BTC remains in a solid daily uptrend, volatility has spiked amid heavy selling. Is this the end of the post-U.S. Tax Day Rally of 2019?

From a technical standpoint, no. Prices remain in bullish territory and appear poised to make a  summertime run at $10,000. With no major rumors or fresh regulatory actions currently hurting crypto values, it is best to rely on market technicals until proven otherwise.

Led By Bitcoin, Cryptos Retrace

The past seven days have brought an expected retracement to the April/May bull run in cryptos. Here is a quick look at the hard data:

Coin                                              Loss       Key Number

Bitcoin BTC                               -7.06%         $7500

Bitcoin Cash (BCH)                      -9.0%           $375

Ethereum ETH                         -4.25%           $250

Litecoin LTC                              -3.48%          $100

Ripple XRP                                -6.05%         $0.4175

Even though most BTC traders anticipated a pullback at some point, the past week hasn’t been an easy ride. Bitcoin has dropped more than $750 in seven days, prompting some in the cryptosphere to question the current uptrend in cryptocurrency values.

Is $10,000 In The Cards For Bitcoin?

BTC is certainly a fickle beast, capable of making big moves at the drop of a hat. Wednesday brought one such breakout, as bears drove June Bitcoin futures to downside support near $7500.

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

Here are the levels to watch in this market as Friday’s closing bell approaches:

  • Resistance(1): Daily SMA, $7658
  • Support(1): Bollinger MP, $7587

Bottom Line: Although BTC has fallen precipitously over the past week, prices are still in bullish territory. Until we see a plunge below $7000, a long side bias continues to be warranted.

For the time being, holding longs from $7600-$7500 isn’t a bad way to play the uptrend in BTC. With a stop out point in the area of $6750, active buys have a good shot at producing $750 to $1000 per BTC profit.

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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.
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