- During the trading session on Tuesday, we saw Bitcoin rally a bit in the early hours, but it does not look like we are ready to break out quite yet.
- At this point, the most obvious thing to pay attention to is whether or not we can break above the $120,000 level, especially on a daily basis.
- If and when we can have that happen, it makes a lot of sense that there would be a bit of “FOMO.”
- However, it’s also worth noting that we have tried a couple of times now, but every time we get above the $120,000 level, we have seen a lot of selling pressure and I think that probably continues to be the case.
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Wall Street will be one of the biggest drivers of Bitcoin at the moment, because it has become an institutional asset. Ultimately, the Bitcoin ETF markets have been a major driver of where we go next, as the volume in the ETF is a major driver of what happens in the spot market. Keep in mind that it is August, and the volume will be a bit of a problem, as most people are going to be focusing on vacation, not so much on trading.
Ultimately, the market is likely to continue to see a whole lot of noise just waiting to happen, but over the longer term it looks very much like a bullish market, and therefore I think we have a couple of different ways to trade in this market.
The first way would be if we get a major break out above the $120,000 level, because it will open up the possibility of a move to the $130,000 level. Alternatively, if we pull back from here, and it is worth noting that the Monday candlestick was a shooting star, then we go looking to the 50 Day EMA for support and probably would be a buyer in that general vicinity. Underneath there, we have the $110,000 level offering a bit of a floor in this market, and as a result it wouldn’t be until we break down below there that I’d be concerned about Bitcoin in general.
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