Safe Havens Take Profits
What we witnessed today was a round of profit taking in the U.S. dollar, gold and Bitcoin. Bitcoin futures as of 5 PM EST are trading down about 2.5% at $7,200. Even with a dip in pricing today BTC is still acting very bullish and should continue onto higher pricing. Today marks the fifth consecutive higher low for Bitcoin futures and the first open above the 21-day exponential moving average since February 19th, at the time BTC futures were trading above $10,000.
Today’s high of $7,515 already tested the next level of resistance at $7,500 and our belief is we will certainly be trading above that level by the end of the week. The fact that BTC traded in tandem with gold and the U.S. dollar, (up yesterday and down today) is evidence that Bitcoin is indeed starting to hold some safe haven draw.
This I believe will be a determining factor as safe haven assets are poised to run higher in the coming month.