Bitcoin starts a late Summer rally hitting $42,000, a recent high in the last 2 months. TrendSpider’s Chief Marketing Analyst Jake Wujastyk was featured in Forbes for his thoughts on Bitcoin’s recent highs. Read Jake’s full analysis below and the article here.
The anchored VWAP from the all-time high has not been respected perfectly and has about a 7.5% margin of error above which would put the resistance level for Bitcoin right around $45k. This margin of error can be seen using the anchored VWAP with a 7.5% percentage offset. The next level to watch above this would be the $50,000 psychological level.
In regards to a reversal, he added,
The current key downside levels include the volume shelf shown by the anchored volume by price tool measuring the volume distribution of shares from the all-time highs. This ‘volume shelf’ shows where a large number of shares are holding, which in this case, ranges from $33k-$36k. If this level breaks down, a test of the previous lows around $28,800 to $30,200 would be the next area to watch.