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MENAFN- Daily Forex)
bitcoin initially pulled back just a bit during the trading session on Friday, but as you can see, we have turned around the show signs of life. All things being equal, this is a market that I think continues to go looking towards the $100,000 level, which of course is a large, round, psychologically significant figure, and an area where a lot of people will be paying close attention. If we can get above there, then it's likely that the Bitcoin market really starts to take off, perhaps reaching towards the $108,000 level where we were turned back around.
Short-term pullbacks in the Bitcoin market should continue to see plenty of buyers, with the 50-day EMA sitting right around $93,000. That is an area that I would anticipate buyers on any drop, and then again at the $90,000 region with the bottom of that support level being at the $88,000 level. While you can make an argument for a potential head and shoulders pattern trying to form, it doesn't look like the market's ready to give it up.
Consolidating?
So, if that's going to be the case, this is just going to end up being simple consolidation, which makes perfect sense, considering the massive move that we had seen previously. It does stand to reason that people are not willing to jump in with huge, massive amounts of money, but those who are more long-term inclined for Bitcoin and our true believers are just simply buying bits and pieces here. If and when the market dips, they buy a little more. And I think that's essentially what you're seeing. Furthermore, you have to keep in mind that this is a market that has been somewhat quiet as far as liquidity is concerned due to the holidays. And I think that continues to be the case.
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If that's going to be the situation, then a lot of traders will be waiting to see whether or not the jobs number greatly influences the Federal Reserve, which is the other side of this trade. If they remain tighter for longer, that might keep Bitcoin quiet for a while, but considering the trajectory of this asset, that's actually a good thing. It gives you an opportunity to get more. If we were to break down below the $88,000 level then, it throws the thesis on its head, at least for the short term, and we could see this market dropping towards the $75,000 region, which had previously been a major resistance barrier, and it should now be support. It's also worth noting that the 200 day EMA is in that neighborhood as well. As things stand right now, I have no interest in shorting Bitcoin. But I also recognize that we're in no hurry to get anywhere.
EURUSD Chart by TradingView
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