Bitcoin bucks the trend
Bitcoin (BTCUSD) managed to break out of short-term resistance at $3650 yesterday and closed above longer-term resistance at $3870. This is quite a surprise as Bitcoin hasn’t shown this sort of performance since its heyday in late 2017. In fact, this is rather the opposite of how it usually behaves. So does that mean that the starting-gun for the Bitcoin rally has been fired ? Well, as encouraging for BTC bulls as this development is, we’d still advise caution. It needs to create enough demand (and confidence) to close above $4500, and even then it will need to acquire significant momentum if it is ever to rally over $6800. There is nothing in the current outlook that suggests this option is worthwhile banking on, but a modest investment will not cause too many sleepless nights. We emphatically do not, however, see any possibility of a rally back up to anywhere near its previous highs, so if anyone is still long over $12,000 and hoping that an escape option is going to be provided then it looks like disappointment is once again on the cards.