Bitcoin markets went sideways during the trading session overall on Tuesday, as we continue to see lackluster trading in general when it comes to crypto currencies.
Bitcoin did very little during the trading session on Tuesday, hanging about the $6750 level. The market has significant support at the $6500 level, so if we were to break down below there we should then go to the $6000 level which is support on the longer-term charts. A breakdown below that level would be very negative, perhaps unwinding this market down to the $5000 level rather quickly. Any rally at this point will more than likely find resistance near the $7200 level, an area that turned the market around yesterday. I believe volatility is here to stay in general, but it looks as if the market is trying to find its next catalyst.
Bitcoin went sideways during the trading session on Tuesday, showing signs of very little in the way of confidence. However, there is significant support below at the ¥700,000 level, so it’s possible that buyers could come back at that point. If we did breakdown below the ¥700,000 level, the market should then go down to the ¥600,000 level. Ultimately, if we rally, I think that the ¥800,000 level will offer significant resistance. Looking at the chart, it appears that we are in short-term consolidation, and that will probably continue to be the way forward. However, as soon as we can break out of this area, it gives us an opportunity to place a more significant position, but until then I would employ a range bound system with small trading size as the volatility could spike or fall apart rather quickly. Once we break out of this range, you can then become a bit more aggressive.
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.