Bitcoin fighting back

Or more correction to come?

Bitcoin is pushing higher after coming under pressure in the middle of the week.

A break below $60,000 could have spelt trouble for the cryptocurrency, and still could, but it’s been quick to rebound back above this level and crypto bulls may be enthused.

The correction in bitcoin saw it fall more than 13% from its highs, a healthy pullback in most instruments but cryptocurrencies exist in a world of their own.

The next notable level to the upside now is $62,500 where the top of the 55/89-period SMA band on the 4-hour chart coincides with prior support. Above here $63,500 is key, a break of which could signal another run at the highs.

A failure at $62,500 though could suggest we’re going to see a larger correction in the near-term, with $53,000-54,000 being key below as prior support coincides with the 50% retracement level and the 200/233-period SMA on the 4-hour chart.

The rally was strong going into the ETF approval so while there may be more profit-taking ahead, longer-term the outlook remains positive.

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