Bitcoin Heading to Highs? Here’s How to Trade It Now. – TheStreet

Bitcoin is down almost 3% on Thursday but generallythe cryptocurrency'sprices have been roaring.

The crypto's slip follows yesterdays 7.5% surge and comes on the heels of a strong run.

Bitcoin rallied for four days before Thursday and in seven of the past eight sessions.

Amid that run, it was up almost 35% coming into Thursday. The move comes as equities have largely been struggling.

Bitcoin helped give a boost to Ethereum, as well as Marathon Digital (MARA) - Get MARATHON DIGITAL HOLDINGS INC Reportand Microstrategy (MSTR) - Get MicroStrategy Incorporated Class A Report, and more recently, Square (SQ) - Get Square, Inc. Class A Report.

The question now is, how far can bitcoin rally and what levels does it need to hold?

Daily chart of Bitcoin.

Chart courtesy of TrendSpider.com

After topping out at $52,900 in September, bitcoin was hit with a quick ABC correction down to $39,579.

It did a good job, however,holding the $41,000 area, as it hammered out a bottom and rebounded.

That rebound is the current rally were seeing now, which sent Bitcoin back above $50,000 and to new multimonth highs.

Now, a pullback after Wednesdays 7.5% gain is actually pretty healthy price action.

From here, Id love to see bitcoin hold the September high as support, at $52,900.

That gives more credibility to the monthly-up rotation that began with Wednesdays action.

If this level is lost, Bitcoin still looks OK as long as it holds the 61.8% retracement and the $50,000 level.

Below $50,000 and the 10-day moving average is in play, along with $47,200.

On the upside, a move above this weeks high opens the door to the 78.6% retracement near $57,175. Above that could put $60,000 in play, followed by a push to the highs near $65,000.

Should bitcoin make that big of a push, it is bound to dip along the way. The key for bulls will be for the cryptocurrency to hold key levels and short-term trend measures.

If it can do this, we could see a strong fourth-quarter push.

But given the recent volatility, we also cant rule out a deeper pullback. For now, keep an eye on $52,900, then $50,000.

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Bitcoin Heading to Highs? Here's How to Trade It Now. - TheStreet