Bitcoin Price Analysis December 5, 2017, Technical Analysis

Bitcoin has been rather choppy over the last several sessions, using the $10,750 level as support. When you look at the hourly chart, you can see that although we have been rallying as of late, we have certainly run out of momentum. The most volume has been seen on the selling side, and that, of course, is a negative signal. However, that doesn’t necessarily mean that the markets will break down significantly, but rather could be looking for more buyers underneath. The $10,000 level is an obvious area where you would expect to see support, so I think it would be a bit surprising to break down below there. If we do, that could attract even more selling as confidence would crumble. I think there is a lot of trepidation in this area because the $10,000 level course has a lot of psychological significance. In a way, sometimes when we pass monumental numbers, it has a reverse psychological effect.

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BTC/USD Video 05.12.17

At this point, I think that the market is trying to get to the $12,000 handle, but it’s difficult to imagine that it’s going to be easy to do in the short term. I think that the markets will probably continue to pull back occasionally for building up the necessary volume 2 continue the uptrend, but the one thing that you cannot deny is that the market has been parabolic during the past year. That, of course, causes its own issues, and someday we will almost certainly see a massive and violent selloff. The question then becomes when do people jump into the market and start buying again? That is a question for the longer-term trader, but the short-term trader certainly sees opportunity every time we dip. Ultimately, if we can break above the $12,000 level, that should open the door to the $12,500 level. With the futures markets opening up in just over a week, there will be more institutional money flowing into the marketplace, which could cause even more volatility. Make sure to trade with smaller positions, incrementally adding as traits work out in your favor.

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