Bitcoin at $6,431.41, down from late-Friday high of $6,804, Bitcoin down more than 50% in 2018.
Fortress Investment Group fund manager Mike Novogratz, who told CNBC Friday that "the sky is the limit," adding that it's impossible for bitcoin not to reach $8,800-$10,000 by the end of the year.
However, Kevin Davitt, a senior instructor at The Options Institute at Cboe Global Markets has called for caution, warning investors this isn't the first rally of the year. "Perhaps this is the beginning of a meaningful move higher for the cryptos after months of pressure. Only time will tell if this rally has legs," wrote Davitt in a newsletter Monday.
"There have been at least 5 significant moves higher (in percentage terms) for bitcoin since the decline began in earnest in early January. While cryptos may be moving with relatively muted volatility in the short term, there's no guarantee that will continue."
Altcoins are underperforming bitcoin Monday. Ether ETHUSD, -5.56% was off 2.7% at $234.80, Bitcoin Cash BCHUSD, -3.01% had lost 3.5% at $467.90 and Litecoin LTCUSD, -2.26% was down 3.5% to $58.43.
In futures trading, the Cboe Global Markets Group Inc.'s October contract XBTV8, -2.34% finished trading down 1.7% at $6,610 and the CME Group Inc. September contract BTCU8, -2.19% closed down 1.9% at $6,610.
BTCUSD trading below the merging 20-EMA and 50-SMA lines, despite the Bullish talk by the major fund managers price action near term, look to be under pressure for more downside.
First September high is lower than August high which in turn is lower than July high, backing this action is the RSI which is sliding down towards the 30s level.
BTCUSD needs to move back above $6,500 to accumulate buyer to push it to the symmetrical triangle resistant of $7,020 and towards $7,379.14 the 200-SMA line.
Support now at $6,200 symmetrical triangle support of $6,200.