Bitcoin markets struggled a bit during the week, initially tried to rally but given back most of the gains before was all said and done. Because of this, I think Bitcoin continues to struggle going forward, and that longer-term investors will continue to need to be very patient if they are bullish.
Bitcoin markets initially tried to rally during the week but given back most of the gains and ended up forming a bit of a shooting star. This is a market that has been struggling for some time, and it now looks as a $9000 level is going to continue to offer resistance now as well, taking place of the previous $10,000 handle. With that being the case, I think that if the market breaks above 10,000, then it can be bought, perhaps to the $12,000 handle, but until then I don’t have any interest in trying to buy this market from a longer-term standpoint.
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Bitcoin markets rallied initially during the week but continue to find the ¥1 million level as resistance. By turning around in forming this shooting star, it shows that the market simply doesn’t have much in the way of upward momentum. I think the market is going to continue to be very quiet and slightly limp, so longer-term traders will need to be very patient if they are indeed bullish for the longer-term move. I think that we could very easily pull back from here though, especially considering that we formed a shooting star for the week, and a breakdown below the ¥800,000 level sends this market looking towards the ¥650,000 level next.
The alternate scenario of course is that we break above the ¥1 million level, which I see as resistance extending to the ¥1.1 million handle. Once we clear that area, then I think we could go to the 1.3 million level. However, that looks very unlikely at this point.
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.