Bitcoin Bursts Back Above 6,000

Most risk assets are selling off on fears of a negative outcome from US-China trade talks, but Bitcoin is quietly defying that trend.

The world’s oldest crypto asset has rallied nearly 100% from its mid-December lows to regain the 6k handle for the first time since November. More to the point, price is testing a critical zone of previous-support-turned-resistance in the $5800-6100, which put a floor under prices throughout Q2 and Q3 of last year:

(Click on image to enlarge)

Source: TradingView, FOREX.com

As the chart above shows, Bitcoin’s RSI indicator is showing a possible bearish divergence, signaling that buying pressure may be fading as prices test this key level. With prices up nearly 20% in the last two weeks alone, we wouldn’t be surprised to see the cryptocurrency pause or pullback in the coming weeks.

Nonetheless, prices appear to have formed a durable bottom near $3k earlier this year, so traders may favor buying any near-term dips back into the mid- or lower-$5,000s heading into the summer.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.