Bitcoin Technical Analysis
Bitcoin has tumbled a bit during the early hours on Tuesday, as it looks like the $120,000 level is a bridge too far for the market, at least at the moment. Nonetheless, this is a market that is still bullish overall, and I think you have to look at it through the prism of whether or not you can find value. We certainly will get a little bit of value presented to us at this point, but we need to see some type of bounce. You just don’t buy it randomly.
Getting on the right side of the V makes the world of difference that traders will be looking to take advantage of a longer term uptrend without suffering through a significant drawdown. I believe that the 110,000 level at this point in time is probably going to be pretty difficult to break down below, so I look at that as a floor, especially now that we have the 50-day EMA rising towards it as well. That was an area that previously had been such significant resistance, so you would also have to assume that there’s a certain amount of market memory here just waiting for it to happen.
With that being the case, I am bullish on Bitcoin, but I recognize we may have a little further to go before we get that drop and bounce that we’re looking for in order to take advantage of what has been a very strong run. If we can break above the shooting star that was formed during the session on Monday, that would be an extraordinarily bullish sign and could send this market much, much higher.
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