Bitcoin Back to a Familiar Support Level: BTC/USD Levels

Bitcoin, BTC/USD Talking Points:

• BTC/USD has held up well of late, all factors considered.
• As looked at previously it appeared as though we’re in one of those periods where the world’s preference for an anti-fiat vehicle has shifted from gold to Bitcoin.
• So far, there’s been a clean hold of support at prior resistance from May – but there’s also been a hold of resistance at the high around 87,300 helping to develop a rather consistent range.

It was the Treasury buyback announcement that lit the Bitcoin market on fire, and in the month-and-a-half since, there’s been a noticeable shift from investors into the cryptocurrency and away from gold. The fact that BTC/USD has held up as well as it has, even with global yields flying higher, is a fact that should be respected. But we’re now at the point where the proverbial rubber meets the road as Bitcoin is testing a significant support level that has some historical relevance.

The level of 82,833 set the high back in May. In the week after that high, a series of lower-highs led to a breakdown and, eventually, a test of the 60k handle in July.

More recently, and perhaps more importantly, is how the level came into play last week. As gold sold off into and around the Fed’s rate hike, Bitcoin continued to power-higher, setting a fresh eight-month-high the week after the move. At that point, with a heavy bullish bias there was ample motive for sellers to drive a sizable pullback. But it was the 82,833 level where bulls took a stand, establishing a higher-low that, eventually, led to another rally.