Bitcoin (BTC/USD): a breakout could happen soon

The price dynamics in Bitcoin has been erratic in the last hours despite the gains we have seen above the support level of 8241, in the middle of the NY Blockchain week. This upward trend is being limited by the Fibonacci expansion of 61.85% in 8612, which coincides with the 200-hour moving average.

The Consensus 2018 event hosted by Coindesk has helped to support the cryptocurrency this week, limiting short-term losses. In the Middle East, it has been reported that a Bitcoin exchange in Dubai has blocked the withdrawals due to a "banking problem", while the BitMEX chief has predicted that the price of the BTC could impact the $ 50,000 this year.

For now, the Parabolic SAR seems to be supporting the bearish bias and the 200-hour moving average continues to guide the cryptocurrency path. Keep in mind that the level of 8322 is a zone of Fibonacci extension of a cycle initiated during May 5, which ended on the day of May 9.

What do we expect?

According to our forecasts in the short-term, Bitcoin is preparing for a decisive breakout in the next few hours, given the context in which the movements are taking place. In case we see a consolidation above the 200-hour moving average, the BTC should then rally to the resistance level of 9234, while a break of 8741 would clear the way to reach the 7997 level.

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Felipe Erazo