- During the trading session on Monday, we saw Bitcoin rally quite nicely. However, it’s also worth noting that we have seen a lot of problems near the $120,000 level, so I think that we might be in a situation where a lot of energy will have to be expended in order to get above that level.
- It’s obviously a large, round, psychologically significant figure, but it’s also an area that previously shown itself to be very difficult to overcome.
- Because of this, I’ll be waiting to see whether or not we can stay above this level on a daily basis, because if we do, that would be a huge victory for the bulls.
Technical Analysis
The technical analysis for this market is pretty easy, as the $120,000 level has been such a massive barrier for the market. If we can stay above there, that would be a huge victory, and I think it’s probably only a matter of time before we go much higher. Ultimately, I would anticipate that the market could rally all the way to the $130,000 level, as the region that we have been consolidating in is essentially $10,000.
It’s also worth noting that the 50 Day EMA has just broken above the $114,000 level, and that is an area that I would look at as a potential support region. If we were to break down below there, then it’s likely that Bitcoin would go looking to the $110,000 level next, as it is a large, round, psychologically significant figure, and an area that has been a major support level. Ultimately, this is a market that I think continues to see a lot of volatility, but I still favor the bullish side regardless. I have no interest in shorting this market, and I look at any pullback as a potential buying opportunity given enough time. It is worth noting that Bitcoin is probably lacking a bit of volume as the Wall Street traders are waiting on the end of the holiday season to really get aggressive.
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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.