Bitcoin continues to look strong
The Bitcoin market initially fell during the trading session on Monday, but then turned around after a strong couple of days as we have found the uptrend line to be crucial. At this point in time the market looks as if it is ready to continue the bullish momentum as we have found that plenty of interest in this market just below.
Massive support just below
I see a significant amount of support just below, as we have initially pulled back a bit to turn around and rally a bit. At this point, the uptrend line obviously has held and has been paid very close attention to. The market has been paying attention to this trendline for several months, and at this point it looks like we have a multitude of reasons to believe in support, not only the trendline. After all, we have the 50 day EMA which is slicing through the bottom of the candle stick, and of course the $10,000 level which of course would cause quite a bit of psychological support as well.
We also have a couple of hammers just ahead of this daily candle stick, so it shows that there is a lot of interest in Bitcoin right now. If that’s going to be the case, then it’s obvious that we will probably go looking towards the $12,000 level. That’s an area that has previously been resistance, and you should keep in mind that the markets tend to pay attention every $2000, and as a result that gives me even more interest in the $12,000 figure.
One of the things that Bitcoin has started to be used for is safety. After all, the central banks around the world continue to ease monetary policy and that of course is going to continue to drive down the value of fiat currencies in general. This has people looking to Bitcoin to protect wealth. At this point, it makes quite a bit of sense that we are going to continue to see Bitcoin gain attention, as it’s one of the world’s favorite ways to avoid fiat, perhaps just behind precious metals. In fact, you control a lot of parallels between Bitcoin and gold right now.
The trade going forward
The trade going forward is quite simple when it comes to Bitcoin: I’m looking to buy short-term dips and I do believe that the low from the hammer on the 15th is the absolute low of the latest wing. Ultimately, I believe that the market will continue to respect that level and I’m willing to hold on until we get to the $12,000 level. Beyond that, I’m willing to add on short-term dips in order to build up a larger core position. The question now won’t necessarily be if we can get to the $12,000 level but whether or not we can break through there. If we can, then we will start looking towards the $13,000 level, perhaps even the $14,000 level. This point, I am very bullish.