Bitcoin Price Analysis December 6, 2017, Technical Analysis

Bitcoin continues to grind its way to the upside, as the 20 SMA has offered support yet again. It looks as if we are trying to form some type of ascending triangle on the hourly chart, and the measured move could send this market much higher, perhaps looking to send the market to the $13,000 level. That’s not to say that it will be easy to go to the $13,000 level, just that the technical measurement suggests this. However, if we are to break down below the $11,400 level, the market probably breaks down towards the $10,600 level. It’s very likely that we have quite a bit of volatility ahead of us, as we continue to see this in the crypto currency markets.

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The next significant resistance barrier is the $12,000 level, and I think that it will take a significant amount of momentum to break above there, but once we do it should send more momentum into the market. Longer-term, we are obviously in an uptrend, but we have the significant pullbacks as the market is not very liquid in comparison to Forex markets, and with larger institutional traders getting involved, the jumps and pullbacks can be rather violent. The market should continue to find plenty of interest as the future markets are getting ready to open in America, and that will allow more money to flow into the sector.

Even if we are to break down below the bottom of the ascending triangle, it’s likely that simply standing on the sidelines and waiting for some stability is probably going to be the best way to play this market. I don’t have any interest in shorting Bitcoin currently, even though we have gotten a bit overbought for quite some time. The anomaly is that the futures market is getting ready to open, and that has attracted a lot of attention. However, the idea of Bitcoin being the road to instant wealth is starting to catch on in mainstream America, and the rest of the world. That is never a good sign longer term. Eventually we will have to have some type of massive correction. Having said that, there is nothing on this chart suggesting that it’s going to happen in the near term.

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