- Bitcoin initially attempted to rally during the session on Friday but gave back gains rather quickly in order to show signs of negativity.
- We have plunged below the $120,000 level, which of course is a large, round, psychologically significant figure, and of course where we had bounce from during the previous session. Now that we have broken down below that candlestick, it does show a lot of negativity, and you have to look at it through the prism of a market that is panicking due to the idea of the United States and China increasing sense. After all, that puts quite a bit of pressure on risk appetite in general, and I think we will continue to see that be the case.
Technical Analysis
The technical analysis is strong longer term, but recently we have seen a massive breakdown. The $117,500 level has previously been significant resistance, and it should now offer quite a bit of support. The 50 Day EMA will course be a technical indicator that a lot of people will be paying attention to, and it could cause a little bit of short-term positive movement.
The size of the candlestick is rather large, but I think given enough time we will eventually see some type of attempt at recovery. The week and will be crucial, because the weekend could give us an idea as to how the institutions will behave on Monday, especially if we get a ratcheting down of the tensions between China and the United States. That of course has caused quite a bit of fear, but that fear isn’t necessarily something that would be a driving factor for Bitcoin over the longer term. Ultimately, I think this is a situation where we are going to continue to be noisy, but there are still plenty of buyers out there. Ultimately, it is still bullish, despite the fact that we have had such a horrific Friday.
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