After yesterday’s consolidation, BTCUSD has accelerated its ascent on Friday. The coin has finally managed to make a clear break above the $8,250 threshold and reached $8,500 for the first time since late March, up 3.5% on the day.
The latest move is more of a technical nature, as there is no any meaningful news in the industry at the moment. It looks like bitcoin finally dared to follow altcoins which are growing substantially. Following a dip below $6,500 earlier this month, the digital currency was gradually recovering towards the $8,000 mark and spent a few days in a consolidation mode around this psychological level.
Now, after a spectacular bullish break, the coin may target the next local resistance at $8,900 over the upcoming weekend. However, there is a risk of profit taking at the current levels, therefore, traders should be cautious with longs above the $8,000 figure which has become a support again.
Should the retreat take place in the coming days, the pair will need to keep above the intermediate support at $7,840.
By Helen Rush
Senior Analyst at Capital Markets