Bitcoin has done very little over the last couple of days, after shooting higher about two weeks ago. That being the case, it’s a question of whether we are in an accumulation phase, or are we in the distribution phase? The main difference of course is that either people are trying to accumulate more and push to higher levels above and take advantage of what is rapidly becoming a decent uptrend, or perhaps they are looking to get out of the market with a small gain or mitigate some of the losses from previous long positions.
BTC/USD daily
The short term
Short-term charts, in this case the one hour chart, have shown a couple of important levels that we have been bouncing around for the last several days. For example, the $4700 level has acted as support, with the $5000 level of course offering a bit of a magnet for price in both directions. Above there, we have the $5500 level which of course is an area where we’ve seen resistance.
You should notice that the moving averages are starting to flatten out, so that obviously isn’t a good look for a bigger trade. At this point, it looks very likely that the market will continue to bounce around these various levels until we get enough resolution to break out of this range. Right now, it looks as if the range will hold so there isn’t a huge rush to go “all in” when it comes to Bitcoin.
BTC/USD hourly
The main take away
The main take away from Bitcoin is that we have had a nice run higher, but at the end of the day we still have a lot of confusion. If you are looking to buy Bitcoin at this point, you should be thinking more along the lines of a longer-term trade than anything else. There is going to be a lot of noise, but quite frankly the more noise we see in this area, the better it is going.
