- Bitcoin continues to consolidate overall, as we see a lot of noisy behavior right around the $120,000 level.
- As the world waits to see whether or not it can find a reason to go higher, this has been somewhat painful trading for those looking for momentum.
- However, it’s worth noting that the last couple of times that we have done this exact type of action, Bitcoin eventually exploded to the upside, something that I would not be surprised at all to see going forward.
Technical Analysis
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The technical analysis for bitcoin is bullish and we are in fact in the middle of a bullish flag, but I also recognize that we could pull back to the 50 Day EMA, near the $113,000 level, and perhaps even as low as the $110,000 level, which was the resistance barrier from before. With this, I’m looking for buying opportunities to take advantage of via dips, but I also recognize that you will probably have to be very patient as traders wait to see whether or not the central banks around the world will start to loosen monetary policy. Remember, Bitcoin was a direct reaction to ultra loose monetary policy by the Federal Reserve and other central banks, and at this point in time it seems like it’s waiting for the Federal Reserve to do something.
Furthermore, Bitcoin is an ETF at this point as far as Wall Street is concerned, and it’s probably worth noting that Wall Street is basically on vacation for the next 45 weeks, as it is vacation season for most traders. All things being equal, if we can break out to the upside, then we could see Bitcoin go looking to the $130,000 level, based on the “measured move” of the bullish flag. Ultimately, I don’t really see any reason to start getting short of this market, but at this point in time we are just simply killing time waiting for some type of momentum.
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