(MENAFN- Daily Forex)

• Bitcoin dropped a bit during the trading session on Monday, to test the crucial $110,000 level.
• This is an area that has been important a few times recently, and I believe that we will continue to see it as an important level to watch.

On Monday, the bounce has been somewhat impressive, and it looks like we are trying to form a bit of a hammer. This is a positive candlestick that a lot of people will be watching. Remember, there are a certain amount of traders that will be“always bullish” of Bitcoin, but this is something that you can take advantage of, all things being equal. It looks as if this is what we see on Monday in the markets.

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The aforementioned $110,000 level is one that you have to pay attention to. This is an area that previously has been massive resistance, as well as support. Also, it is a large, round, psychologically important number for traders to pay attention to. This is especially common in the crypto markets, as it is so retail driven. However, a lot of institutions are now involved, and therefore some of the issues could be stemming from the lack of volume from Wall Street this time of year, as it is high vacation season.

EURUSD Chart by TradingView

If we bounce from here, then a run to the $120,000 level is very possible, and this would be a situation where we are simply continuing to bounce around in this same range that we have been in for the summer, which makes sense as we have been working off a lot of the froth from the big move higher that we have seen previously. The market is likely to watch the Federal Reserve as well, as the monetary policy will dictate what could be coming for the US dollar overall, which of course has some influence in the BTC area.

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