Bitcoin Technical Analysis
The Bitcoin market has rallied again in the early hours of Friday, breaking above the $120,000 level only to see rejection yet again. This is a market that quite frankly, I think you have to look at it through the prism of whether or not we can actually sustain a move. The market is likely to continue to be a buy on the dip scenario, with the $116,000 level underneath being a potential floor, as we have seen it behave with importance previously.
If we break down below the $116,000 level, then we could find ourselves going down to the $112,000 level. On a break above the $120,000 level, and more importantly, the shooting star from Monday, then I think you’ve got a market that’s likely to go looking to the $130,000 level given enough time. It will take some time to get there, but quite frankly, I think you’ve got a situation where traders are just looking at this through the prism of being bullish and trying to find value along the way via dips as they occur.
I have no interest whatsoever in shorting this market, as it is so strong overall. I think it’s just far too strong and the buy and hold mentality of the institutional traders out there as well continue to offer a little bit of a floor in this market, as it has for so long now.
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