- Bitcoin initially fell on Friday, only to turn around and show signs of life again. We are hanging on to the $120,000 level, which of course is a large, round, psychologically significant figure, and an area that a lot of people will be paying close attention to.
- This is an area that has been important multiple times in the past, and it’s likely that we will continue to see this market offer a lot of bullish pressure on dips, extending all the way down to the $117,000 level, an area that was short term resistance.
It’s also worth noting that the candlestick is starting to look a bit like a hammer, so that shows just how much interest there is in this market every time it drops, so I believe that this remains a “buy on the dips” type of scenario. The $117,000 level is an area that previously had been significant resistance, so it should have a certain amount of “market memory” attached to it, and therefore it’s likely that the buyers will step in and try to support Bitcoin if it does fall to that level.
On the Upside
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Ultimately, on the upside we should continue to see a lot of interest near the $124,000 level, an area that had previously been significant resistance, where we had fallen from. Ultimately, if we can break above that level it opens up the possibility of the market going to the $130,000 level eventually. Keep in mind that we have seen a lot of bullish pressure over the last 6 trading days, and therefore we might have a little bit of exhaustion creeping into the market sooner or later. It’s possible that the weekend into being very sideways, but I still think that it’s difficult to get short of Bitcoin, and I do believe that eventually we test the all-time high yet again as there is so much interest in the market at the moment.
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