Bitcoin Technical Analysis
The Bitcoin market has pulled back a bit during the early hours on Tuesday and really at this point in time, I think what we’re looking at is a market that is essentially just consolidating. The $90,000 level underneath is more likely than not going to be significant support, and the $90,000 level probably extend support all the way down to about $88,000. It’s really not until we break down below there that I think you have to worry, and worry is a relative term here.
That just means we probably have a deeper correction, and really at this point in time, I don’t think that’s a bad idea either. The market got way ahead of itself as it does from time to time and I do think that ultimately, you’ve got a situation where eventually we will have to work off some of the excess froth and hype that recently entered the market as Bitcoin raced towards that crucial $100,000 level.
Most traders I know are just simply dollar cost averaging because they believe in it over the longer term. For myself, I just buy dips, sell rips, and repeat. I don’t like shorting this market because quite frankly, it can move for no apparent reason. The Wall Street ETF, of course, gives it a little bit of a floor these days. So it does behave a little bit differently than it had in the past and right now, I think that’s part of the process that we’re going through, trying to discover what exactly it is Bitcoin’s going to end up being.
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