Bitcoin Weekly Technical Analysis
The Bitcoin market fell pretty significantly during the course of the trading week to reach the $90,000 level, only to turn around and show signs of life again. At this point in time, the market continues to be very noisy, but it tends to be positive and that’s the point. We had our pullback and now we’re comfortable hanging around in this area. The question of course is whether or not we are going to continue to see an upward trajectory. I think that is the case, but we may have to work off some of this excess froth. After all, this is a market that had seen a massive shot higher.
And now the question is, do we need to pull back a bit more before building up the necessary momentum and confidence to break above the $100,000 level or will we just take off? Truthfully, if you’re a longer term bullish trader of Bitcoin, you want to see a 20% pullback at this point down to the $80,000 level. Whether or not we get it remains to be seen, but the one thing that this chart does tell me is you can’t get short of Bitcoin anytime soon.
A scenario where traders continue to look at this through the opportunity of finding cheap coins every time it drops. Keep in mind that the ETF on Wall Street backs this up now. So, it’s easy for people to invest in, and therefore I think it gives it more or less a flavor of the S&P 500. I think you will see every time it dips, there’s people out there willing to jump in and start buying.
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