• The bitcoin market has been a little bit negative during a large chunk of the trading session on Thursday, as we continue to consolidate just below the $120,000 region.
• This is an area that’s been important for a couple of weeks now and has been held quite firmly as far as resistance is concerned.
• That being said, we also have significant support near the $116,000 level, so that it is worth something watching as well, due to the fact that it has been fairly reliable over that same timeframe.
   

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Bitcoin Remains Bullish

Bitcoin continues to be very bullish overall, despite the fact that we are going anywhere at the moment. All things being equal though, this looks a lot like either a bullish flag, or a bullish pennant, depending on how you draw it. Both of these very bullish, and the “measured move” suggests that we could go to the $130,000 level, based on the $10,000 range that the pole of the flag measures. Furthermore, it does make a certain amount of sense that we would move to the $130,000 level next, as it is a large, round, psychologically significant figure.
 

Even if we were to pull back from here, I think you’ve got a situation where there is plenty of support underneath, not the least of which would be the $110,000 level, but we also have the 50 Day EMA sitting near the $111,300 region, which will is essentially the top of the “zone of resistance” that we fought so vehemently against just a few weeks ago. In other words, I think there is plenty of support underneath that should continue to help this market go higher. With that being the case, I think the market is likely to be a “buy on the dips” scenario going forward, as bitcoin has been for several months now. I have no interest in shorting this market anytime soon as it is far too strong.

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