- Bitcoin has enjoyed a great run so far this month, hitting $55,750 overnight
- All time highs are now just $10,000 away, but a pullback is expected soon
- Dip buyers are expecting a pullback soon, but where should they be looking
Bitcoin’s lung busting run from $40,000 just over a week ago has seen it hit $55,750 without a pullback, something that we know cannot go on forever. Having hit a patch of seemingly solid resistance however, it appears that we might finally be getting one:
The question now of course is where will it land? In a bull run you want to see higher highs and higher lows being formed in order to maintain it, which leaves us with the pretty straightforward desire for Bitcoin to treat the prior resistance at around $52,700 as new support:
This would represent a perfect higher high and higher low, leaving Bitcoin beautifully placed to tackle its prior all time high of $65,000. Given the rapidity of the rise however, there is a chance that we could see a deeper retrace to the $50,000 region:
While this would technically invalidate the higher high, higher low thesis, it would nevertheless see prior resistance acting as support which is still a firm basis for a push higher. Dropping any further down would undermine the strength Bitcoin has shown in recent weeks, with bulls not wanting to countenance a collapse through $48,000 at this point.
What if Bitcoin Keeps Going?
There is of course the possibility that Bitcoin will not pull back but will instead put on another burst. If this is the case, there are two key levels for Bitcoin to look out for – all time highs of $65,000 and a range around $58,000:
Punching through $58,000 would of course be supremely bullish, but it would then be in real need of a pullback to continue further sustained growth, which would mean either $55,000 or $52,000 holding as support.