Technical analysts weighed in after bitcoin's latest price movements. (Photo illustration by ... [+] Chesnot\/Getty Images)<\/p>\n
Bitcoin prices have been trading primarily between $30,000 and $42,000 since late May, but recently, they have repeatedly attempted to mount convincing breakouts. <\/p>\n
In the last week, the cryptocurrency surpassed the upper limit of the aforementioned range multiple times, CoinDesk figures show. <\/p>\n
It reached $42,351.93, $42,369.39 and $42,435.07 on July 30, July 31, and August 1, respectively, additional CoinDesk data reveals. <\/p>\n
More recently, the digital asset has fallen back somewhat, declining to as little as $38,978.57 this morning, down roughly 8.1% from yesterdays recent high. <\/p>\n
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]<\/p>\n
Key Technical Levels<\/p>\n
Keeping these latest developments in mind, several technical analysts weighed in, shedding some light on bitcoins crucial levels of support and resistance. <\/p>\n
Katie Stockton, the founder and managing partner ofFairlead Strategies, LLC, offered some perspective: <\/p>\n
Bitcoin has broken through the resistance I have been highlighting defined by the cloud model, which lowers over time, she stated. <\/p>\n
It previously was near $42K, but has since lowered to below $38K, such that a breakout has already been confirmed above cloud-based resistance.<\/p>\n
A Fibonacci retracement level near $42.6K remains intact as resistance, however, so I would imagine some are focused on that, Stockton added. <\/p>\n
Once that level is surmounted, the targeted level becomes $51.1K based on the Fibonacci levels, she concluded. <\/p>\n
William Noble, the chief technical analyst of research platform Token Metrics, also chimed in.<\/p>\n
Bitcoin is facing substantial resistance near $43k, he stated, adding that this resistance is clear on charts. <\/p>\n
Potential Opportunity<\/p>\n
Noble spoke to the recent pullback, describing bitcoins recent drop to roughly $39,000 as an opportunity to get involved if you missed the rally.<\/p>\n
The decline in bitcoin from $42k to $39k is likely a pause that refreshes, he stated. <\/p>\n
Mark Warner, head of trading at BCB Group, also offered a bullish take. <\/p>\n
There are many sellers at $42,000, where longs have been trapped since 19 May, so we expect more resistance at this level. A confirmation of the breakout, by BTC retesting $34,500-$36,000, could provide buying opportunities for those who missed out.<\/p>\n
Downside Risk<\/p>\n
While the aforementioned analysts focused on bitcoins resistance and potential buying opportunities, other market observers commented on how the digital currency could suffer further losses. <\/p>\n
Julius de Kempenaer, senior technical analyst at StockCharts.com, spoke to this. <\/p>\n
BTC is still in its trading range and, as a matter of fact, BTC seems to be respecting the technical boundaries of that trading range ($30k-$42k) fairly well so far, he said. <\/p>\n
Unless we see a clear break above that upper boundary, the risk now seems to be the downside again.<\/p>\n
Jason Lau, COO of cryptocurrency exchange Okcoin, also weighed in. <\/p>\n
Bitcoin's been stuck in this range for the past few months and resistance at the $42k level was expected, he noted. <\/p>\n
Bitcoin last hit this range in mid June and fell 30% the following week, Lau emphasized. <\/p>\n
Key metrics around BTC futures and premiums look similar to the last time, he said. <\/p>\n
BTC futures open interest has rebounded in past few days, but at similar levels to mid June. <\/p>\n
Since 7\/31, BTC futures funding rates have turned positive, having been mostly negative for the past few weeks. Again, we are now at similar levels to mid June. <\/p>\n
Looking ahead, we would need to see a clean price break above $42,000, along with a strong uptick in BTC futures funding rates, before we can confirm a breakout of the range, said Lau. <\/p>\n
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS. <\/p>\n
<\/p>\n
Read more from the original source: Technical analysts weighed in after bitcoin's latest price movements. (Photo illustration by ... [+] Chesnot\/Getty Images) Bitcoin prices have been trading primarily between $30,000 and $42,000 since late May, but recently, they have repeatedly attempted to mount convincing breakouts Continue reading
\nWhere Are Bitcoin Prices Headed After Their Latest Pullback? - Forbes<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"