- Bitcoin recovered gracefully above $6,700 but bears capped the gains below $6,800 critical resistance.
- “I do think in 2018, trading has shifted. I do think hedge funds are playing a role right now,” Tom Lee said while on CNBC.
Bitcoin has been correcting higher after recovering from the declines that occurred mid-last week around $6,250. There was a hurdle at the 23.6% Fib level with the last drop from $6,780.90 to a low of $6,292.67 around $6,410.18. However, a breakthrough above the critical resistance at $6,500 gave the bulls a boost above $6,700 but the trend stalled short of $6,800 forming highs of $6,780.90.
In other news, one of the most respected analysts in the industry and the co-founder of Fundstrat, Tom Lee recently said while appearing on CNBC that his company is still confident that Bitcoin will hit $20,000 before the year ends. He went ahead to compare Bitcoin price performance to the emerging market charts found on the S&P 500 index. Lee said that the crypto and the emerging market have both been experiencing a downtrend following the uptrend at the beginning of the year. He stated in regards to both markets:
“Until emerging markets begin to turn, I think in some ways that correlation is going to hold and tell us that sort of the risk on mentality is those buyers aren’t buying Bitcoin.”
Tom Lee also believes that hedge funds do have significant role in the crypto market:
“I do think in 2018, trading has shifted. I do think hedge funds are playing a role right now.”
In the meantime, Bitcoin price is trading at $6,703 although it has recorded intraday highs of $6,731.54. The price has been correcting lower from the weekend high at $6,787.90. The bullish trendline has and still is a significant support. The initial support is at the 50SMA (15’ chart) currently highlighted at $6,692.31 and the second support is the 100SMA on the same chart currently at $6,687.33. The trend is, however, still bullish with the MACD in the positive region of the 0.0 mean line. Other support targets further down include $6,640 and the 61.8% Fib level at $6,600.
BTC/USD 15-minutes 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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.