Bitcoin [BTC] Struggling to Hold on the 3.5% Gains: 2019 Highs to Remain Unconquered

  • Tom Lee of Fundstrat: Bitcoin continues to appeal to institutions mainly hedge funds.
  • Bitcoin remains in control following a break above $13,000.

Bitcoin smashed through $13,000 hurdle for the second time in 2019 further increasing investors’ confidence in the uptrend. BTC/USD had corrected from June highs around $13,800 to lows around $9,663 on July 2. The bulls have spent most of last week and this week shaking off the bear pressure. The rebound above $10,000 allowed the bulls to focus on $12,000 which has further paved the way for impressive gains to weekly highs of $12,182.

According to Tom Lee of Fundstrat, Bitcoin continues to appeal to institutions mainly hedge funds. Lee feels that this current rally is driven mainly hedge funds. Bitcoin also presenting itself as a good hedge against macroeconomics and fiscal risks. Moreover, Lee says that Facebook’s Libra revived interest in cryptocurrencies across the board by validating digital money as a worthy technology.

BTC/USD 4-h chart

Bitcoin Chart
Bitcoin Chart | source: Tradingview

That aside, Bitcoin is trading at $13,030 while fighting to hold onto the intraday gains. $13,000 is weak support but significant support areas start with the 61.8% Fib level taken between the last swing high of $12,893 and a swing low of $9,663.51. The gradually slopping 100 Simple Moving Average (SMA) 4h will function as support as well as $11,000. In the event an acute reversal occurs, Bitcoin will find solace at $10,000 and the recent low at $9,663.

The upside remains unconquered above the intraday high. Besides, BTC/USD is likely to trend sideways in the coming sessions on Wednesday. Moreover, the Moving Average Convergence Divergence (MACD) is moving upwards suggesting buyers will have control in the near-term. The Relative Strength Index (RSI) re-entrance into the overbought means that the current momentum will continue to gain strength.

Bitcoin Key Technical Indicators

Critical hurdles: $13,182 (intraday high), $13,893 (June high) and $14,000 (target).

Support Levels: 61.8% Fib level, $12,000, $11,000 and $10,000.

MACD: Gradual slope upwards is the key bullish indicator.

RSI: Uptrend suggests momentum gaining traction.

The post Bitcoin [BTC] Struggling to Hold on the 3.5% Gains: 2019 Highs to Remain Unconquered appeared first on Coingape.

Share