Bitcoin Technical Analysis
The Bitcoin market initially pulled back just a bit during the trading session here on Wednesday, but has turned around to show signs of life. By doing so, it looks like we are trying to break above the $120,000 level. Whether or not we can stay above the $120,000 level at the daily close will be the big question here. Quite frankly, we have a scenario where traders just seem to be struggling to keep the market above the $120,000 level.
So, a daily close above there does signify a bit of a shift in attitude, as we’ve seen a couple of major repudiations of the buyers in that general vicinity. Even if we were to break down from here and roll over, then I think you have a situation where buyers are going to get involved and pick up cheap Bitcoin.
The 50-day EMA is sitting right here at the $114,470 level and rising. And I think that is something you need to pay close attention to, as it was a bit of a trend line. The market breaking above the high of the previous session on Tuesday opens up the possibility of Wednesday finally being the breakout candle. But again, I’m not a buyer until we get a daily close above the crucial $120,000 level. On the breakout, I anticipate a move to the $130,000 level, but ultimately, this is a scenario where traders will continue to deal with a lack of volume and perhaps a bit of uncertainty when it comes to the Federal Reserve.
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