- During the trading session on Tuesday, we saw Bitcoin rally a bit in the early hours, but it does not look like we are ready to break out quite yet.
- At this point, the most obvious thing to pay attention to is whether or not we can break above the $120,000 level, especially on a daily basis.
- If and when we can have that happen, it makes a lot of sense that there would be a bit of “FOMO.”
- However, it’s also worth noting that we have tried a couple of times now, but every time we get above the $120,000 level, we have seen a lot of selling pressure and I think that probably continues to be the case.
Follow Wall Street
Wall Street will be one of the biggest drivers of Bitcoin at the moment, because it has become an institutional asset. Ultimately, the Bitcoin ETF markets have been a major driver of where we go next, as the volume in the ETF is a major driver of what happens in the spot market. Keep in mind that it is August, and the volume will be a bit of a problem, as most people are going to be focusing on vacation, not so much on trading.
Ultimately, the market is likely to continue to see a whole lot of noise just waiting to happen, but over the longer term it looks very much like a bullish market, and therefore I think we have a couple of different ways to trade in this market.
The first way would be if we get a major break out above the $120,000 level, because it will open up the possibility of a move to the $130,000 level. Alternatively, if we pull back from here, and it is worth noting that the Monday candlestick was a shooting star, then we go looking to the 50 Day EMA for support and probably would be a buyer in that general vicinity. Underneath there, we have the $110,000 level offering a bit of a floor in this market, and as a result it wouldn’t be until we break down below there that I’d be concerned about Bitcoin in general.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.