Bitcoin is down almost 3% on Thursday but generallythe cryptocurrency'sprices have been roaring.<\/p>\n
The crypto's slip follows yesterdays 7.5% surge and comes on the heels of a strong run. <\/p>\n
Bitcoin rallied for four days before Thursday and in seven of the past eight sessions. <\/p>\n
Amid that run, it was up almost 35% coming into Thursday. The move comes as equities have largely been struggling. <\/p>\n
Bitcoin helped give a boost to Ethereum, as well as Marathon Digital (MARA) - Get MARATHON DIGITAL HOLDINGS INC Reportand Microstrategy (MSTR) - Get MicroStrategy Incorporated Class A Report, and more recently, Square (SQ) - Get Square, Inc. Class A Report. <\/p>\n
The question now is, how far can bitcoin rally and what levels does it need to hold? <\/p>\n
Daily chart of Bitcoin.<\/p>\n
Chart courtesy of TrendSpider.com<\/p>\n
After topping out at $52,900 in September, bitcoin was hit with a quick ABC correction down to $39,579. <\/p>\n
It did a good job, however,holding the $41,000 area, as it hammered out a bottom and rebounded.<\/p>\n
That rebound is the current rally were seeing now, which sent Bitcoin back above $50,000 and to new multimonth highs. <\/p>\n
Now, a pullback after Wednesdays 7.5% gain is actually pretty healthy price action.<\/p>\n
From here, Id love to see bitcoin hold the September high as support, at $52,900. <\/p>\n
That gives more credibility to the monthly-up rotation that began with Wednesdays action.<\/p>\n
If this level is lost, Bitcoin still looks OK as long as it holds the 61.8% retracement and the $50,000 level. <\/p>\n
Below $50,000 and the 10-day moving average is in play, along with $47,200. <\/p>\n
On the upside, a move above this weeks high opens the door to the 78.6% retracement near $57,175. Above that could put $60,000 in play, followed by a push to the highs near $65,000. <\/p>\n
Should bitcoin make that big of a push, it is bound to dip along the way. The key for bulls will be for the cryptocurrency to hold key levels and short-term trend measures. <\/p>\n
If it can do this, we could see a strong fourth-quarter push. <\/p>\n
But given the recent volatility, we also cant rule out a deeper pullback. For now, keep an eye on $52,900, then $50,000.<\/p>\n
<\/p>\n
Read more: Bitcoin is down almost 3% on Thursday but generallythe cryptocurrency'sprices have been roaring. The crypto's slip follows yesterdays 7.5% surge and comes on the heels of a strong run. Continue reading
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