Again, as covered on the previous piece, the digital currency community (primarily BTC) took to the news extremely well, with bitcoin surging from just shy of $230 at Friday’s market close to more than $260 over the weekend. Now, it looks like this trend is set to continue as we head into a fresh week. Take a look at the chart below.
As you can see from the chart, action today has broken BTCUSD (Bitstamp) through the elusive 300 flat resistance – a level not seen for nearly 3 weeks. Could this finally be the catalyst we need to stem the bearish momentum in BTCUSD and inject some optimism into the space? Perhaps.
Even with today’s bullish action, we must consider that we are now trading just shy of 305, a level that served as strong support on two occasions in October and December last year. What does this mean? Well, from a purely technical perspective in a traditional financial charting manner, we may see some resistance as we head into the open of the European markets on Monday. With this in mind, we could see a temporary correction back down to (and even below) 300 over the next few hours.
Don’t let this put you off, however. We seem to be getting a few decent announcements as late with regards to advancing bitcoin into an (admittedly controversial) regulatory framework – and this could well be a turning point for the digital currency. Lunar pushing bitcoin to the moon? Only time will tell.
Images from Coinbase.