- Bitcoin has rallied quite nicely during trading here on Monday as we continue to see a lot of buyers jumping in and trying to threaten the $110,000 level.
- I do think there is a lot of noise at this point in time right around that area.
- Market participants continue to see the $110,000 level as a major barrier.
The size of the candlestick on Monday is bullish, but I also recognize that we are facing quite a bit of effort here that is needed in order to continue. I certainly don’t have any interest in shorting this market. Therefore, I think any dip here is likely to be thought of as a buying opportunity when it comes to Bitcoin.
This is especially true with the 50-day EMA near the $101,500 level and rising, and the $100,000 level underneath acting as a major floor. With that being said, I think we are in a range that is trying to come up with enough momentum to finally break out. You have to keep in mind, over the last several months, we have rallied 40%, so it makes a certain amount of sense that we have to spend some time going sideways, bouncing around, maybe knocking out some of the weak hands in Bitcoin.
Over the Long-Term
Longer term, I do think that we will go higher, and I do think that we will break above the $112,000 level to go looking at the $120,000 level. If we break down below the $100,000 level, then I start to think about maybe letting the market settle a bit and just letting it tell us what to do. But even at that point in time, I would not short Bitcoin anytime soon, as it looks so strong at the moment.
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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.