Bitcoin fails to convince
There have been some shenanigans in Bitcoin (BTCUSD) over the last few days, with it being rejected from the recent high of @$8400 several times. This will bring some negative pressure on BTC, as no-one can be sure of who is selling it, or why. We suspect that this is profit-taking, or long-haul owners taking the chance to reduce holdings after hanging on for a year or so. At this stage our view would be to sell into rallies to see if it can maintain its downward pressure. The rally has been quite strong but there is clearly some opposition here and it has recovered moderately well from its lows of around 6 months ago. This is not a million miles away from its previous rally to a shade under $8465 going back all the way to July last year. At this stage we feel that it is likely that although the rally has had quite a strong foundation we’d err on the side of caution at this point and sell into any rallies to see how this plays out.