(MENAFN- Daily Forex)
bitcoin has gone back and forth during the course of the trading session on Tuesday as we try to figure out where we are going next. After all, we have seen a huge move higher, and have even managed to touch the $23,000 level. I'm the first to admit that I am a bit surprised by this, but whether or not we have changed the trend is a completely different question. While I do think it looks very promising, I don't like the idea of just jumping in here, because if the trend has changed, should be plenty of time to get involved.
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Furthermore, you have to worry about the idea that the there is still a lot of negativity when it comes to the economy, and although a lot of people were pushing the idea of the Federal Reserve loosening monetary policy, is very likely that on February 1 they will reiterate the idea that they are in fact going to remain tight for as long as the eye can see. I think that might be what kicks off another move lower in Bitcoin, but if we see that coming go, and Bitcoin remained stable or even go higher, I think that will be the final sign that the uptrend has started.
Again, even if I'm a little bit late to getting involved in the trade, if we are in fact in a new uptrend, then a few thousand dollars won't matter one way or the other. I would suspect that the $25,000 level will be the next target for the bulls, as it is a large, round, psychologically significant figure. I don't necessarily think we are in the clear yet, but it certainly has started out quite nice. A move below the 200-day ema could send sellers back into this market, and most certainly giving up $20,000 again would be another reason to think that perhaps we are in trouble.
There are still a lot of problems around Bitcoin, but it's worth noting that the market has managed to rally despite the fact that it seemed like the whole industry is either based on fraud, or outright theft. Nonetheless, it is what it is and you don't argue with markets. Right now, it looks decidedly bullish, but we still have a lot of work to do to make it a trend.
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