- Bitcoin had an interesting trading session on Friday as we initially took off to the upside, but just a few hours later, all of sudden things don't look peachy here.
- Nonetheless, I think really what you need to be looking at more than anything else is the fact that we are in consolidation and that really hasn't changed.
- So, with this I like the idea of looking for dips that you can start to buy, but I also recognize that the market really doesn't have any reason to go higher at the moment.
- We are in the midst of forming or reacting to a double top, but maybe it'll end up being a triple bottom. We'll just wait and see if we get close to the $100,000 level.
The 50 day EMA sits underneath and is offering a bit of a floor and therefore I think you need to be cognizant of this potential entry for more value hunters. If we were to turn around and break above the $110,000 level, then it's possible that Bitcoin could really take off to the upside maybe running to the $120,000 level on a pullback from here and a breakdown below the 50 day EMA, then the $100,000 level is going to be an area that I think a lot of people will be interested in. This is a market that bounced about 40 % in basically about six weeks.
(Click on image to enlarge)
Pullbacks are Good
So, a pullback isn't the worst thing in the world. It certainly is not an unreasonable thing to see. I think if you're a longer term trader, you're still looking for a breakout and a move much higher.
But if you're a little bit shorter term, you're probably going to be looking at this through the prism of a range bound, a back and forth type of environment.
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