Bitcoin ran as high as $28,597 yesterday before selling kicked in. The cryptocurrency has a resistance area around the $28,167 area (red shaded horizontal), which is proving tough to overcome. The cryptocurrency is currently trading around $27,450.
There are a few possible factors that are reinforcing the resistance level. These include profit taking and higher treasury yields. Another headwind is that the launch yesterday of seven exchange-traded funds holding Ether futures disappointed. The ETFs saw less than $2m in trade within their first fifteen minutes, a potential sign that interest in cryptos is declining.
This puts pressure on the amount of positive sentiment that will be generated for cryptocurrencies when the first Bitcoin spot ETF is launched early next year.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.