- The bitcoin market exploded to the upside during the trading session on Thursday, reaching over 4% in gains at one point during the day, and perhaps more importantly, breaking above the $100,000 level.
- It’s interesting to see this happen, because this is in reaction to not only upward momentum overall, but once the United States and the United Kingdom announced a trade deal, it looks like there’s been a major move into risk appetite.
Furthermore, we have seen words coming out of the White House about how the US and Chinese trade delegates over the weekend could see Chinese tariffs dropping a bit. That has a lot of people jumping into the market to see everything as turning to the upside, and that has people buying Bitcoin, as it is pretty far out on the risk spectrum. All things being equal, this is a market that lead the way back to the upside for Wall Street, just as it led the way to the downside previously. That’s a major difference in attitude for Bitcoin, which I attribute to the fact that a lot of institutional investors are now involved.
Technical Analysis
The technical analysis for Bitcoin continues to be strong, as the last several weeks have been very bullish, and of course a couple of weeks ago we have seen the 50 Day EMA break above the 200 Day EMA, kicking off the so-called “golden cross.”
Ultimately, this is a market that I think also has to be looked at through the prism of whether or not technology stocks are going to go higher, which they have been during the trading session on Thursday. Oddly enough, Bitcoin seems to have a strong correlation with the NASDAQ 100, at least in general.
I have no interest in shorting this market, and I think that there is plenty of support near the $96,000 level, and then again at the $90,000 level as we have the 50 Day EMA in that vicinity as well. To the upside, the $110,000 level is the most obvious target, as it was a major swing and all-time high.
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