- The bitcoin market has been a little bit negative during a large chunk of the trading session on Thursday, as we continue to consolidate just below the $120,000 region.
- This is an area that’s been important for a couple of weeks now and has been held quite firmly as far as resistance is concerned.
- That being said, we also have significant support near the $116,000 level, so that it is worth something watching as well, due to the fact that it has been fairly reliable over that same timeframe.
Bitcoin Remains Bullish
Bitcoin continues to be very bullish overall, despite the fact that we are going anywhere at the moment. All things being equal though, this looks a lot like either a bullish flag, or a bullish pennant, depending on how you draw it. Both of these very bullish, and the “measured move” suggests that we could go to the $130,000 level, based on the $10,000 range that the pole of the flag measures. Furthermore, it does make a certain amount of sense that we would move to the $130,000 level next, as it is a large, round, psychologically significant figure.
Even if we were to pull back from here, I think you’ve got a situation where there is plenty of support underneath, not the least of which would be the $110,000 level, but we also have the 50 Day EMA sitting near the $111,300 region, which will is essentially the top of the “zone of resistance” that we fought so vehemently against just a few weeks ago. In other words, I think there is plenty of support underneath that should continue to help this market go higher. With that being the case, I think the market is likely to be a “buy on the dips” scenario going forward, as bitcoin has been for several months now. I have no interest in shorting this market anytime soon as it is far too strong.
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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.