• Bitcoin has been all over the place during the trading session on Wednesday, as we are trying to determine whether or not the market did successfully support the $60,000 level.
• The $60,000 level of course is a large round psychologically significant figure and it's an area that has been important multiple times in the past.
• It does look like it's trying to offer a bit of a floor so I think if we can stay somewhat stable here it's very possible the bitcoin will rally.

If we can take out the top of the candlestick from the Monday session that opens up a move to the 50-day EMA and then eventually the $67,000 level above. If we were to break down below the $57,750 level that could open up fresh selling, but right now it really looks to me like it's a market that's doing everything it can to find its footing and continue the overall consolidation that we had seen over the last four months.

Plenty of noise out there

This has been an interesting market due to the fact that we have seen so much in the way of massive upward pressure and then the market has just sat still for four months. We have to ask the question whether or not Wall Street just pulled off a big con job because essentially that's their job. They want people to buy assets so that they can sell them to them.

(Click on image to enlarge)

Whether or not that's going to be the case with Bitcoin remains to be seen, but it certainly looks from a technical analysis standpoint that we could see a bit of a recovery here. I wouldn't get aggressive though. Bitcoin can really fall apart when it decides it wants to. So you don't want it to be a huge part of your portfolio. The volatility profile of BTC/USD excites a lot of traders, but it's also a great way to lose money if you are not cautious. Because of this, it should only be a small part of your portfolio in order to avoid wild swings in profit and loss statements period

More By This Author: