Bitcoin: Will It Hit New Highs?
MarketPulse | Oct 20, 2021 12:13AM ET
Bitcoin was heavily in focus on Tuesday following the launch of the first-ever ETF, a landmark momentum for the cryptocurrency industry.
The fact that the first day of trading of the ProShares Bitcoin Strategy ETF (NYSE:BITO) on the NYSE came at a time when Bitcoin was pushing record highs is probably no coincidence; traders were perhaps hopeful that the day would bring extra enthusiasm.
The question then became whether this would become a standard buy the rumor, sell the fact moment with a sizeable correction to follow and that debate is probably still being had.
Bitcoin bulls will probably look at Tuesday's price action with confidence. Price came within a whisker of record highs and remains there at the time of writing, but we haven’t yet seen any significant profit-taking.
And we’ve seen what can happen when the hype around Bitcoin builds—the moves to the upside can be explosive. Perhaps that’s still building.
Momentum on the daily chart doesn’t offer much insight, with it flat-lining at best, but the 4-hour chart appears to show clear divergence which could be a red flag. That said, it could quickly change if we move into record territory.
If we do see record highs, where next? It’s anyone’s guess really. We’re in uncharted territory. The next test will come around $70,000 but you know the talk will be about whether we’ll see six figures.
On the downside, $60,000 offers a psychological test, $58,000 more of a technical one. It should be interesting, either way.
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