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Bitcoin on the Move – Is $9,000 Too Big a Target

By:
Bob Mason
Published: Apr 14, 2018, 06:38 UTC

Bitcoin moved back through to $8,000 levels early as the bulls look to break through the day's first major resistance levels to revive the talk of $10,000 and more.

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Bitcoin slipped 0.34% on Friday, following Thursday’s 14.2% rally, to end the day at $7,889.2. It was a solid week for Bitcoin and the broader market, with Bitcoin gaining 10.13% for the week, Monday through Friday, the bulls firmly in control.

It was a choppy day on Friday for Bitcoin, with an early morning intraday low $7.739.1 finding support at the 23.6% FIB Retracement Level of $7,712.52 to rally through to an intraday high $8,240 in the middle part of the day, Bitcoin steering clear of the day’s first major support level of $7,090.47, while breaking clear of the day’s first major resistance level of $8,087 with the day’s high.

A late in the day reversal ultimately saw Bitcoin give up $8,000 levels, Bitcoin falling to $7,821 before a partial recovery to the day’s end.

The late sell-off was not severe enough to raise concerns of a possible reversal to the near-term bullish trend formed at 6th April’s swing lo $6,500.2, which has reversed the longer-term bearish trend with Friday’s consolidation of Thursday’s gains.

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BTC/USD 14/04/18 Hourly Chart

At the time of writing, Bitcoin was up 1.29% to $7,988.4, with a start of the day rally seeing Bitcoin bounce to an early morning $8,086 high, a cautious morning seeing Bitcoin struggle to hold on to $8,000 levels, pulling back to $7,900 levels.

Moves through the morning have left key support and resistance levels untested, with an early $7,820 low holding well above the day’s first major support level of $7,669.33, with support kicking at the 23.6% FIB Retracement Level of $7,829.4.

With the bull rally firmly intact, Bitcoin avoiding a pullback to test sub-$7,000 support levels on Friday, a hold above the 23.6% FIB Retracement Level of $7,829.4 through the middle part of the day would support another move north and a break back through $8,000 levels to test the day’s first major resistance level of $8,170.23, with Bitcoin likely to dictate broader market sentiment through the day.

A failure to move back through to the morning’s high to test the day’s first major resistance level of $8,170.23 could see some easing later in the day, though we would expect Bitcoin to avoid a major sell-off to test the day’s first major support level of $7,669.33, with the 23.6% FIB Retracement Level of 7,829.4 likely to provide support, the 38.2% support at the FIB Retracement Level of $7,575.4 unlikely to be tested through the day.

Elsewhere, NEM’s XEM was one of the front runners, up 3.96% at the time of writing, with DASH up 3.02%, the crypto majors all in positive territory in the early part of the day, investors expecting the news wires to remain relatively silent through the day to continue to support the near-term bull run that has been seen market wide and supported the cryptomarket’s market cap recovery to over $300bn.

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About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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