Bitcoin trading at a monumental level
With all that has gone on in the past day one would expect Bitcoin to have been more reactive with heightened volatility. However, we did not see any erratic and fast moves in the market, and BTC futures have continued to rise to higher pricing.
One technical feature that was expected and still remains is the apparent resistance at 2019 highs at approximately $14,200. Last night we saw BTC futures trade too but not above this level and today we saw the intra-day high supersede this level but not able to hold above it.
Currently, as of 4 PM EST, BTC futures on the CME are trading up by $330 for a gain on the day of 2.38%. This puts the cryptocurrency derivative just below this level we are watching at $14,175 so there is still clear resistance at this historical level and it is unclear if BTC will breach it today.
While the bears and bulls battle it out let’s go over why we see this level as uber important. This is Bitcoin’s last technical hurdle until approximately $17,000. It was here that bitcoin hit its peak in 2019 but more importantly perhaps is this price area was the only area that Bitcoin held its ground at during the sell-off from $20,000 that occurred at the end of 2017 into the beginning of 2018. We can see on a weekly candlestick chart that Bitcoin was able to close out the week a total of four times at this level after dipping below it on each of the four weeks. After finally succumbing to bearish pressure on the week of January 15th, BTC was not able to close out a week back above this level. If BTC can just simply hold this price point for the rest of the week it will be the first weekly close above Bitcoin futures all-time 61.8% Fibonacci retracement level and could usher in a whole new era of growth for the digital asset.
Any break above this level in a clear and sustained fashion especially on a weekly basis will certainly trigger us to issue a buy signal in Bitcoin futures.