• Bitcoin initially fell during the trading session on Tuesday but has seen more of that buy on the dip mentality that's been so prevalent in this market.
• Ultimately, I think you've got a situation where Bitcoin continues to see plenty of interest and therefore it's difficult for it to break down.
• Whether or not it takes off to the upside for a bigger move remains to be seen, but over the longer term, I do think that happened.
• This is a situation where we just got “over our skis” a bit. Working this off makes a lot of sense at this point.
   

Patience Will Be Needed

The short term probably continues to see a lot of noise between the $90,000 level below and the $100,000 level above. This does make sense. After all, it got from the $74,000 barrier to the $100,000 barrier rather rapidly. And now I think we're in a phase where we are just simply going to continue to work off some of the froth and take advantage of cheap Bitcoin every time we pull back.

(Click on image to enlarge)

Eventually, we could make another surge higher and finally break above the $100,000 level. If we do, then the measured move of the consolidation would send Bitcoin looking to the $110,000 level rather quickly for a 10% gain. Keep in mind though, that markets can only go in one direction for so long, so a correction probably is more likely than not. I don't have any interest in shorting Bitcoin and would love to see it pull back to the $80,000 level to find some type of value, but I don't know if it's going to fall that quickly or that hard in the short term. We'll just have to wait and see. Either way, this is a one direction bet. It's to the upside. So, you're just looking for value to take advantage of.

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