- Bitcoin rallied on Wednesday as we continue to see a lot of noise in the financial markets. The Bitcoin market has been of interest as of late, as we have seen 3 of the 4 last candles show green, and a large range is on top of that.
- With that being said, we are testing a major resistance barrier that is worth noting near the $117,000 level. The $117,000 level is an area that’s been important multiple times, but it looks like we are slamming into that and it’s also worth noting that even though the fact that we broke above there at one point during the session, and then turned around to show signs of weakness, suggests to me that we are in fact trying to break out, but seeing plenty of hesitancy.
Technical Analysis
During the Wednesday session we broke higher, we have to pay attention to the fact that we are at the top of a major consolidation area that has been important for some time. We initially pulled back during the previous session to test the 50 Day EMA and then launched to the upside to therefore it is worth noting that the buyers are still out there, and it is probably worth noting that volume has picked up over the last couple of days. However, it’s also worth noting that the volume has not been stellar, so I think we are more likely than not to continue to see a lot of sideways action.
That being said, we can break above the top of the candlestick for the trading session on Wednesday, then we may challenge the $120,000 level, a large, round, psychologically significant figure that had been important multiple times. Pullbacks at this point in time will almost certainly test the 50 Day EMA near the $113,500 level, and then after that we could break down to the $110,000 level. Ultimately, this is a market that is bullish over the longer term, and now all we need is some type of catalyst to get going. Short-term pullbacks continue to be value opportunities.
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