Bitcoin shows resilience on Wednesday, rebounding near the 200-day EMA and forming a hammer after earlier weakness. Analysts highlight $110,000 as key resistance and $100,000 as critical support, expecting continued volatility and possible sideways movement in the short term.
- The Bitcoin market initially fell significantly during the trading session but has turned around to show signs of support.
- By bouncing the way it has, it looks like we are hanging around the 200-day EMA and is forming a bit of a hammer.
- It's worth noting that the previous candlestick was a shooting star, so I think all things being equal, this is a market that I think continues to look at the $110,000 level as important.
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Whether or not we can bounce from here and go higher remains to be seen. But if we break down below the hammer from about a week ago, meaning $104,000, then we will go looking at the $100,000 level next. This is obviously an important level to pay attention to, as it is a large, round, psychologically important figure.
Bitcoin Will Remain Volatile
Ultimately, this is a market that I think will continue to be very noisy and volatile, which makes sense because Bitcoin is under the best of circumstances. And right now, things are pretty noisy. After all, one only has to look at the gold and silver market to see that. Whether or not we hang out in this area remains to be seen, but it is a good sign that we're at least not melting down, considering what we are seeing in silver and gold.
With that being the case, I think maybe some sideways action is in order here, but if we break down below $100,000, then we really start to fall apart. I don't see that happening, at least not in the short term. And it certainly looks like the trading session on Wednesday has shown that there is at least some resilience right around the $105,000 level. This is a good sign and could be welcome news for Bitcoin believers.
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