Βitcoin – BTCUSD trades slightly lower in the Asian session after yesterday’s strong rebound from $6,853 as it continues the rebound from six-month lows. The sell-off in virtual currencies started last Friday after the warning from PBOC that cryptocurrencies remain unauthorised, illegal public financing and investors must be careful on virtual currencies.
Bitcoin capitalization recovered from 121.46 billion the lowest level since May to 135,73 billion, while the capitalization of the 100 biggest cryptocurrencies broke the resistance at 200. Billion and climbed at 204.04 billion.
Bitcoin Resistance and Support Levels
BItcoin managed to breach the resistance at $7,400 that we mentioned yesterday and despite today’s correction holds above that level at $7,468. The RSI 14 on the daily bitcoin chart also rebounded from the oversold level at 20 to 38.11. Cryptocurrency prices momentum is still negative despite the recent rebound and bulls now need convincing break above $7,665 that will attract more bids for an attempt to the $8,000 psychological resistance.
On the downside, immediate support for BTCUSD stands at $7,422 the daily low while the 7,000 mark is a psychological support zone, a break below that level will open the way for a test of yesterday’s low at 6,853 before the strong support at 6,534 recent low. Next level to watch on the downside is the $5,705 low from May 8th.