- During the trading session on Wednesday, we have seen little in the way of movement when it comes to the Bitcoin market.
- Ultimately, this is a market that I think is lost and just has no idea what to do with itself.
- The market has been consolidating for a while, and therefore I think it shows just how lost we are in general, due to the fact that there have been a couple of major events that have sent the market higher, but we have a situation where there isn’t much going on right now.
Technical Analysis
The technical analysis for this market is somewhat sideways and lackluster, but when you look at the last year or so, the market continues to see plenty of buyers, but they need a reason to do so. After all, the original reason to rally has been that Wall Street got approval for an ETF, and then after that we see Donald Trump elected. The Donald Trump administration is expected to be very pro-crypto, but it’s early days now, and therefore we are waiting to see what happens next. All things being equal, this is a market that has been bullish over the longer term but is in a bit of a “holding pattern.”
Currently, it looks like the $90,000 level offer significant support that extends down to the $88,000 level, where the 200 Day EMA is currently heading. On the upside, we have the $110,000 level acting like a major ceiling in the market, and it’s not until we break out above there that I think the longer-term buyers will continue to push the market higher. Between now and then, we probably have more of a “back-and-forth” type of situation where traders are jumping into pickup little bits and pieces, accumulating more Bitcoin along the way.
At this point in time, I think this is a market that you do not want to short, but I don’t necessarily expect to see a massive amount of upward momentum either. Short-term pullbacks continue to be buying opportunities from what I can tell.
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