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• Bitcoin bounced quite nicely during the trading session on Wednesday, as we have seen the $112,000 level reassert itself at an important level.
• This is an area that previously had been significant resistance, and I think at this juncture you have to assume that it will continue to be very important.
• Ultimately, if we can continue to see a little bit of fight in Bitcoin near this area, I think you’ve got a scenario where we could rally all the way to the $120,000 level. That’s an area that a lot of people are going to be watching closely, as it has been like a magnet for price.

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Technical Analysis

The technical analysis for bitcoin is somewhat bullish, but recently we’ve seen a lot of noisy behavior to the side, mainly due to the fact that risk appetite is all over the place. This will continue to be a bit of a problem for Bitcoin, because obviously it is pretty far out on the risk appetite spectrum. With that, I think you have to believe that this is a market that will eventually have to make a bigger decision, but as things stand right now, I don’t know that too much has changed from a longer-term standpoint. Furthermore, you have to keep in mind that Wall Street is heavily involved in bitcoin now, so it will pay close attention to the volume coming out of New York.

If we were to break down from here, I’m not particularly worried about Bitcoin until we close on a daily candlestick below the $110,000 level. If we were in fact going to get that move, then I think you have to step out of the way and simply let bitcoin do its thing before bouncing and then getting involved to the upside yet again. I have no interest in shorting this market, at least not until we see a breakdown below the 200 Day EMA below.

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