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Bitcoin (BTC/USD) Rallying Back – Tougher Tests Lie Ahead


Bitcoin (BTC/USD) and Alt-Coin Analysis and Charts:

  • The daily Bitcoin chart is starting to look positive.
  • ‘Wash Out’ zone needs to be overcome if the rally is to continue.

Bitcoin (BTC/USD) is leading the cryptocurrency higher again today as buyers tentatively return to the space after the recent heavy sell-off. Bitcoin’s market dominance is currently just under 44%, after trading sub-40% in mid-May, and this renewed interest and strength may well continue in the short term. The daily chart shows a bullish hammer formed on Tuesday this week, while BTC is also trading above the 20-day sma for the first time in a month. A close and open above this short-dated sma is needed to confirm positive sentiment in the market.

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Tougher times lie ahead for the market peer with a zone between just under $42,000 and $43,580 likely to provide stiff resistance. The 200-sdma is currently just below $42,000, while the May 19 ‘wash out’ candle tops out at just over $43,500. Both the longer-dated sma and this zone/candle need to be broken conclusively to provide further positive sentiment.

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Bitcoin (BTC/USD) Daily Price Chart

The alt-coin market remains under pressure and despite pushing higher on Wednesday, they remain sharply lower over the last 4-5 weeks. While the current rotation back into Bitcoin continues, it is unlikely that these recent alt-coin losses will be pared back significantly.

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What are your views on Bitcoin (BTC) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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