The big news in the bitcoin world on Friday is that the bitcoin documentary “The Rise and Rise of Bitcoin” has been premiered at the Tribeca Film Festival. The film documents the lifespan of the digital currency, and unsurprisingly, paints a rosy picture of the cryptocurrency space. Despite the positive representation of bitcoin, the BTCUSD has taken a major dip on Friday, and the volatility suggests there may be some gains to be had in the markets. Here’s what you need to know.
First, let’s take a quick look at the action so far this week. The BTCUSD has been relatively flat since Monday, trading within a pretty tight channel as part of a gradually downward sloping trend. An upside break during yesterday’s session suggested there may be some intraday strength, but strong resistance just shy of 496.67 catalyzed a sharp downturn. The pair broke back into its range and quickly through channel support, finding a certain amount of support at 446.138. This is now the level to watch.
Today’s action offers up an intraday bearish technical bias, so look for a failed retest of 446.138 to validate 425.050 as an initial downside target. Beyond that, if the bears remain in control, look to April 12 support at 409.011 as a secondary goal.
Yesterday’s action showed just how quickly a bias can reverse, so bear in mind that there may be a correction, or even a full reversal, in store before the markets close for the weekend. Looking to the upside then, keep an eye on 446.138. Price will likely retest this level before the downtrend resumes, and a break above it would suggest a correction. Look for an initial upside target at 454.103, and watch price action around this level as a bias indication as the day matures.
As ever, keep stops tight and keep a close eye on the news sites for any fundamental releases that may shift sentiment.
To contact the reporter of this story: Samuel Rae at Samuel@forexminute.com