Bitcoin Technical Analysis
The Bitcoin market has shown itself to be a bit noisy during the early session here on Tuesday as we are trying to do everything we can to get to the $120,000 level. The $120,000 level of course is a large, round, psychologically significant figure that a lot of people will be paying attention to. And of course, an area where we’ve seen a lot of action previously.
If we can finally break above there on a daily close at least, I think you’ve got a shot at Bitcoin breaking out and going much higher. In that environment, I could see Bitcoin going all the way to the $130,000 level as it does tend to move in $10,000 increments. If we fall from here, it looks like the $116,000 level is an area that has been important support over the last couple of weeks, and I would anticipate that it should behave very much the same again.
If we break down below there, then we start to look towards the $112,000 area, which is sitting just above the crucial $110,000 level and the crucial 50-day EMA. Keep in mind that Bitcoin is most certainly in a very bullish run to the upside, and therefore I don’t have any interest in shorting this market. I think short-term pullbacks will continue to offer buying opportunities, and I also look at this almost as a bullish pennant. So that could be a situation where the market might have a self-fulfilling run to the upside as a result. The US dollar is weakening a bit earlier in the session, so that may help Bitcoin as well.
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