BTC/USD hits 20 month high, good to buy at dips BTC/USD has broken major price barrier $500 on May 28th 2016 and hits 20 month high. It is currently trading around $517.48.
Short term trend is bullish as long as support $470 (resistance turned into support) holds.
On the higher side the pair has reached $540 on Saturday and slightly declined from that level.
Any break above $540 will take the pair to next level till $575 (161.8% retracement of $540 and $485)/$630 (161.8% retracement of $502 and $294).
The pair’s support is around $470 and break below targets $450/$435.
Jack Liu, Chief Strategy Officer of OKCoin , told EconoTimes in an email:
"After two long years, Bitcoin price crossed back across the US$500 mark led by OKCoin's CNY exchange - the largest digital asset trading platform in the world. The price first reached $500 on May 28, and was followed later on by OKCoin's USD exchange and other global platforms such as Coinbase. We believe with the Chinese economy entering into a “L-shaped” recovery rather than a "U-shaped" one, the dearth of mainstream, prudent investment choices has made Bitcoin a relatively attractive choice. This is especially in light of the fact that the Bitcoin supply will be halved in just over a month, adding to deflationary supply pressures and increasing the digital asset's investment value in the short, and long term.
It was not a surprise to see the upturn. After all, the whole world is facing slower growth and low to negative interest rates, not just China. "
It is good to buy at dips around $510-$515 with SL around $470 for the TP of $575/$630.
