• I'm watching Bitcoin struggle around the $100,000 level, a key psychological point.
• The market remains volatile, lacking momentum, with possible targets at $108,000 on the upside or $92,000 if the breakdown continues.

I think this is a pretty big test for Bitcoin because $100,000 will attract a lot of attention as traders typically respond to these large, round, psychologically significant figures. At this point, the consolidation is still being held, but what is worth noticing is that the last couple of days have seen an attempt to take off to the upside, but it just can’t quite make it happen.

If we can break above the $104,000 level, then it opens up the possibility of a move to the 200-day EMA being targeted at the $108,000 level. However, I would also like to point out that there is a lot of choppiness, so position size will be crucial.
 

(Click on image to enlarge)

On a Move Lower

If we break down below the $98,000 level, then it’s possible that we will unravel down to the $92,000 level. But I really think, at this point in time, you’ve got a situation where the market is likely to continue to see a lot of volatility and choppiness. The 50-day EMA is starting to drop, perhaps reaching toward the 200-day EMA, kicking off a so-called death cross, which is, of course, a longer-term bearish signal.

Really, at this point in time, it shouldn’t be a huge surprise that we are seeing a bit of pullback and negativity due to general fear in the markets right now. It’s not necessarily Bitcoin; it’s just moving along with tech. That being said, if we can turn around and recapture this $108,000 level, I think that would be a huge victory. But right now, it just doesn’t look like we have momentum.

More By This Author: