- Bitcoin continues to go sideways overall, and the Monday session of course is very quiet.
- Because of this, it makes a certain amount of sense that we will continue to see noisy behavior.
- The $94,000 level is an area that has been important multiple times, and even if we were to break down below there, I think there is significant support underneath, especially near the crucial $90,000 level.
Furthermore, keep an eye on the 50 Day EMA which sits just below the $90,000 level, and is rising. This means that we could be looking at a market that eventually attracts enough attention to continue going higher, as the 50 Day EMA does tend to attract a lot of attention for Bitcoin traders. In general, this is a market that I think will continue to be very noisy and sloppy, because we have just seen a massive shot higher in the Bitcoin market, and a certain amount of digestion necessary to attract more buyers.
On the Upside
If we were to rally from here, I recognize that the $100,000 level is that might be difficult to overcome. If we can break above the $100,000 level, then it gives us an opportunity to go looking to the crucial $110,000 level, which is essentially the all-time high. Bitcoin seems to be trying to do everything it can to attract more buyers, but the question at this point will be whether or not it needs to get back some of the gains in order to do so? I don’t know if that’s the case, but if you are just simply scaling into a longer-term position, that will be as big of a deal to you. If you’re a short-term trader, then you need to look for some type of pullback in order to find the necessary value.
This isn’t to say that we can’t break out to the upside, I most certainly think we could. However, it does make a bit of sense for the market to simply grind away and try to get rid of some of the excess froth that has most certainly enter the market over the last 3 weeks or so.
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