- Bitcoin continues to be a bit noisy, as we have seen yet another pullback on Thursday.
- Ultimately, this is a market that given enough time I believe will continue to see a lot of consolidation, and I think given even more time will probably rally quite drastically.
- However, we are in a holding pattern as traders continue to wait to see what the US may or may not do as far as regulation is concerned.
This is a market that has been driven quite aggressively to the upside a couple of times over the last year or so, but there have been major fundamental reasons for that happening.
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The first one’s the Wall Street ETF that was approved, meaning that institutions could jump into Bitcoin much easier. People got excited about the idea of Boomers finally jumping into Bitcoin. They did not do so, although that is something that the market seems to be willing to overlook. After that, we consolidated for 6 months or so, at least until the Donald Trump election. Once Donald Trump was elected, Bitcoin jumped again and found itself reaching toward the crucial $110,000 level. We have since gone sideways just like we did last year, and I think we are still in the same scenario where traders are trying to sort out whether or not there’s going to be a reason to go higher.
Technical Analysis
The technical analysis for this market is somewhat neutral to flat, but I think it depends on your timeframe as well. For example, if you are looking to invest, then each dip should be a buying opportunity. In fact, I have been buying little bits and pieces of Bitcoin along the way, essentially doing what is known as “dollar cost averaging.” This is a lot different than trading; this just means that I think someday, Bitcoin will go substantially higher. I don’t even care why; I just think of it as a small savings account that I am growing.
However, if you are a traitor then you need to look at this through the prism of the $90,000 level being a support zone that extends down to the $88,000 level. On the upside, the $110,000 level seems to be a major ceiling in the market, and anything above there unleashes the next leg higher.
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