• Bitcoin fell significantly during the trading session on Thursday as we continue to see some risk appetite get hit.
• Furthermore, it’s probably worth noting that the US GDP numbers were much hotter than anticipated, so a lot of traders will be looking at this as a scenario where risk appetite starts to shrink because loose monetary policy may not be coming as aggressively as people had hoped for.

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Technical Analysis

The technical analysis for this market is a bit flat recently, but we are starting to reach a significant support level, and perhaps more importantly, the 200 Day EMA which is near the $106,000 level. If we were to break down below there, then it’s possible that the market could go looking to the $100,000 level below, as it is an area that will attract a lot of headline attention.

On the other hand, if we were to turn around and rally at this point in time, a move above the 50 Day EMA, basically the top of the candlestick for the session on Thursday, then we could go looking at the $117,000 level, an area that’s been very difficult to break above.
 

The size of the candlestick of course is somewhat important, although I would also be the first to say it’s not outrageously huge, so I don’t necessarily think that we have some type of panic. I think simply put; the US dollar strengthening has put a little bit of an anchor around the neck of Bitcoin during the session.

When I look at this chart, it does look like a market that is trying to break down, but I don’t see a massive breakdown at the moment. We are starting to get to an interesting area that people will have to pay close attention to. I will be waiting for the next couple of days to see which direction Bitcoin decides to move, because quite frankly we could be on the verge of something bigger.

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