• Bitcoin has gotten hammered during the day, but we remain stuck in this range as most markets are really not doing anything right now.
• We are in the worst time of year for momentum for most markets as volume dries up.
• And you have to keep in mind that Bitcoin is no longer a peripheral market. It's now an ETF on Wall Street.

So, when that comes into play, Wall Street's volume, or in this case, lack of interest in trading, will have a major influence on what happens next. That being said, it is worth noting that Bitcoin's been very bullish for some time and going sideways here is probably a good sign because we're not really dropping with any significance. That suggests that perhaps buyers are willing to step in and hang on to Bitcoin and that there's no real panic. I do believe this is a scenario where traders are just trying to sort out whether or not we can finally get a reason for the market to take off to the upside. The candlestick from last week that ended up forming a hammer is something I'd watch with support near the $115,000 level.
 

(Click on image to enlarge)

If We Drop Further

Anything below there could open up a move down to the 50 day EMA, possibly the $110,000 level, but I don't expect to see that I do look at it as both of them as being an area that I might be interested in buying.
 

If we can get a daily close above the $120,000 level, then I think you've got a situation where we probably kick off the next leg higher, and the measured move for this market would be for the $130,000 level, as it does tend to move in $10,000 increments. Again, though, this is a very quiet time of year on Wall Street, so therefore Bitcoin may not have anywhere to be for a while.

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