Bitcoin (BTC/USD) experienced very volatile movements early in today’s Asian session as the pair traded as high as the 5985.00 level after trading as low as the 5163.16 area during yesterday’s North American session. The 5985.00 level represented an upside price objective related to buying activity that commenced around the 4860.00 area during Saturday’s Asian session. One range that traders are carefully monitoring is the appreciation from last week’s recent relative low around the 3858.00 area to the 5995.00 level. Bids have emerged above the 5178.67 area during recent sessions, right around the 38.2% retracement of the appreciation. Buying pressure had earlier materialised at or just below the 4925.60 area, representing the 50% retracement of the appreciating range, and traders await indications the markets may move above or below this short-term range.
Last week’s significant depreciation involved some of the most acute downward price activity ever experienced by BTC/USD traders. As traders decoupled from the risks associated with BTC/USD, a series of major Stops were elected below key price levels, and these price areas included the 7793, 7417, 7265, 6993, 6613, 6468, 6345, 5619, 5558, 5329, and 4509 levels. During the pair’s modest recovery, the pair as high gained ground to the 5885 level, came off to the 4696.55 area, gained ground to the 5995.00 level, and then fell back to the 4924.97 area before moderating. Below current market activity, traders were closely watching levels including the 4342, 3688, 2882, and 2673 levels. Stops are likely in place below these levels.