Having rallied into Monday evening, the BTC/USD closed sharply up for the day, and the momentum continued throughout the early hours of Tuesday morning. The pair made fresh weekly highs at 590.145 before a strong bearish pin strengthened resistance and initiated a sharp downside rally ahead of the European markets open. Monday resistance at 572.968 offered up a small amount of resistance but nothing substantial, and after reaching daily lows at Monday support around 569.403, the pair has traded with a range between aforementioned support and 579.781 range resistance.
The technical bias is clearly to the downside, but whether the momentum will carry through as the day matures remains to be seen. A number of fundamental factor might deliver some upside in the pair as the markets open. First on the roster are reports of Marc Andreessen, founder of Netscape, revealing he has invested $50M in bitcoin companies and plans to invest hundreds of dollars more into the cryptocurrency. Second is the report that a number of bitcoin exchanges have passed solvency audits, which should serve to reinforce confidence.**relatedarticle**
If the fundamentals take hold, look for the current downside momentum to slows and the potential for some strength in the BTC/USD. The key level to watch as far as upside is concerned will be in term range resistance at 579.781. If the pair can close above this level, look for an initial target at 582.602. Beyond that, look for further upside to carry the pair towards Monday highs at 590.145.
Conversely, a break below in-term support would reinforce the current technical bias and suggest there may be new daily lows, despite the aforementioned positive sentiment. A break, and a close, below 569.403 would offer up an initial downside target of Monday resistance at 563.934. Beyond that, look to 560.814 as a potential BTC/USD daily low.
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