• Bitcoin has been very quiet during the trading session on Friday, as we are sitting just below the $110,000 level, but more importantly, just simply have failed to turn things around to fight back against the nasty candlestick from the Thursday session.
• The $110,000 level looks as if it is going to offer a little bit of resistance, and I think if we were to break above that level, then it would confirm the overall consolidation area, which I think sees the $107,000 level as significant support, especially as the 200 Day EMA is racing in that general direction.
   

(Click on image to enlarge)

Major Level Above

If we were to close the day above the $110,000 level, then I think you have the opportunity of a bounce, perhaps reaching to the 50 Day EMA before it is all said and done. If we can break above there, then the $117,000 level is a target. We have been in a bit of a rectangle as of late, but it is worth noting that Bitcoin simply doesn’t seem to be willing to take off to the upside quite yet. It’s essentially a flat market with more of a “meh” attitude at the moment, mainly I believe driven by the fact that institutional money isn’t as excited about new shiny toy as it once was.
 

Furthermore, keep in mind that the Federal Reserve monetary policy is a bit murky at the moment, and that has people a bit concerned about whether or not the monetary policy is “loose enough” for people to get excited about alternative investments like this market. The ETF is now a major driver of Bitcoin price, and therefore you need to think about how Wall Street will be behaving going forward in this environment.

The attitude at the moment is one that is in a bit of flux, and therefore I would expect a lot of noisy trading, but I still think that the overall attitude is one that suggests there will be buyers sooner or later in this market.

More By This Author: