Tuesday's Market Minute: Bitcoin Breakout Broken?

Few financial products have matched the level of interest and enthusiasm found for Bitcoin during recent years. HODLers have been anxiously watching as the cryptocurrency’s futures have rebounded upwards in recent months after falling below the 6,500 level in December.

The 10,000 level is the point on which many have been fixated – this level is psychologically significant for traders, as well as roughly the level of the linear regression line for the yearly chart. Yesterday’s breach above the critical resistance level of 10,000 level looked promising with a sharp gap up after Sunday’s open that took out the previous highs from October, but /BTC quickly slipped back to near 9,500 before it caught a bid.

Prices are still flirting with 10,000 this morning, yet the RSI has been showing bearish divergence, making lower highs as price makes higher highs. Now the question is whether speculators were simply taking profits amid a rally, or if Bitcoin is running out of steam yet again. If the move upward fails to hold, watch the 21-day EMA near 9,182 for support.

Image by MichaelWuensch from Pixabay