Bitcoin saw a limited response to the US Jobs data though the conclusion of a delay in the US easing eventually saw it drop near the close. At this point we find it curious that major wall street firms are reporting huge inflows in their new bitcoin ETFs yet we are not really seeing new highs for the underlying assets. This brings up a concern over saturation, while we do think blockchain and crypto are here to stay we may have to rethink their underlying value particularly as it seems it would take a global easing by central banks to push things higher.
Resistance
- 72707 – April 08 High
- 71911 – May 21 High
- 70053 – Intraday Consolidation Low
Support
- 68485 – Intraday Consolidation Lows
- 66600 – Daily Consolidation Floor
- 65931 – 50D Moving Average
BTCUSD is technically forming a double top in the daily charts with a daily stochastic also coming off overbought levels. Big picture we appear to be getting well resisted around the 72707 area as attempts to push towards the historic highs have been repeatedly rejected the past three months. For now we see the three week consolidation under the May 21 highs to continue immediate risk calling for a follow through to Friday’s drop. We need some form of catalyst to either see new highs or takeout the 50D Moving Average suggesting a test of the post halving lows.
