Bitcoin Continues to Find Buyers
- Bitcoin finding horizontal support
- Friday showing signs of life
- Cryptocurrency on the precipice
Bitcoin has bounced during the trading session on Friday as we continue to see a lot of support just below. The $9250 level is massive support, as indicated on the chart, since the support line that has been so strong over the last several months has held. It will be interesting to see what happens next, as we are at the point of wondering whether or not we are going to continue to see a bullish trend.
Technical factors come into play when it comes to the Bitcoin market. At this point, it’s very likely that we are going to see signs of support in this general vicinity based upon the $9250 level, which offered so much support over the last several months. However, there are other things to pay attention to on the chart that aren’t necessarily positive.
The first thing is the fact that we had broken down below the trend line. That is a very negative sign, but you can also make an argument for not only the horizontal support, but also the 200 day EMA. At this point, if we break down below the $9250 level, it opens up a move lower, down to the $8000 level, as the 200 day EMA is right around that level. To the upside, the red 50 day EMA will also offer resistance right along with the previous uptrend line.
All that being said, even though the technical analysis is all over the place, the reality is that the level we are at has offered plenty of support in the past. So, until it gets broken, one should assume that we are going to see support, especially considering that we have bounced a bit over the last couple of days every time we got close to it.
The fundamental case
The fundamental case for Bitcoin rallying makes sense considering that the world is running away from trouble and fiat currencies. Central banks around the world continue to loosen monetary policy, so at this point it’s foreseeable that Bitcoin will continue to find plenty of buyers. It’s probably only a matter time before the market turns around, reaching towards the 50 day EMA and eventually the $12,000 level, which is the top of the range.
At this point, there is a lot of choppiness. That’s not a huge surprise considering that we are at the end of the summer, which typically shows little in the way of volume. However, in the next week or so, we will start to see more money run into this market and go looking to the upside.
I believe that Bitcoin will continue to find buyers at this point in time. We would have no interest in shorting, although I do recognize that a break down below the $9250 level on a daily chart gives a short-term selling opportunity. At the same time, the 200 day EMA may be even more supportive.