Bitcoin Hesitates Around $11k

Bitcoin Hesitates Around $11k

City Index  | Jun 24, 2019 10:12

Bitcoin continues to defy gravity after piercing $11k on Friday. Yet with prices looking stretched, we suspect a retracement could be due before its trend continues.

BTCUSD 5 Day Relative Performance

That said, Bitcoin has shown its ability to not look back once a move is underway so we cannot rule out an attempt from bulls to push it to new highs. But we’d suggest caution at these high levels, given the lack of pullbacks since the June low.

We can see on the relative performance charts that crypto currencies are highly correlated. Year to date, Bitcoin has rallied over 180%, most of which has occurred these past three months. Yet even these eye watering numbers pale in comparison to Litecoin which has rallied a staggering 356% over the same period.

Still, there are signs that the move could be in need of a pause.

  • Friday failed to close above $11k
  • A bearish hammer has formed beyond the upper Keltner band to warn of price exhaustion
  • A bearish divergence is forming on the RSI

BTCUSD Daily Chart

"Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient.

Any references to historical price movements or levels is informational based on our analysis and we do not represent or warrant that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, nor does the author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions."

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