Bitcoin Technical Analysis
Bitcoin has fallen rather precipitously over the last several days and broke below the $60,000 level in the early hours on Tuesday. However, we have bounced a bit to show signs of life. And that of course is a good start. The question is, can we hold $60,000? Because $60,000 has been an area of extreme importance in this pair for some time.
And with that being the case, I think you have to look at this through the prism of whether or not it’s offering value. When you look at the chart zoomed out, you can see that we had a massive run higher, about 92% in six weeks. And since then, we’ve done a lot of sideways action. 60,000 is basically the area of support. The massive resistance is up at $73,000. So, you can make an argument for the value of being found here.
Obviously, you have to also keep in mind that perhaps, you know, maybe something’s wrong with Bitcoin. The MACD is overextended to the downside. So that may come into the picture as well. But really at this point in time, I think you have to wait to see if we can break just a touch higher, because if we can get any type of follow through momentum that would probably really help this market. At this point, I’m not willing to sell Bitcoin, but I am going to be patient before I start throwing a bunch of money into this market. Once we do take off to the upside though, it could be a nice trade just waiting to happen.
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This article was originally posted on FX Empire
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