Bitcoin has a long history of rapid pullbacks on withdrawals, and it has enough volatility that sooner or later you’ll have a chance to buy it for less.
Bitcoin markets retreated slightly in Tuesday’s trading session, but turned to show signs of strength again to hit the 13,700 level. It is a market that should continue to rise but I would have liked to see more decline. It would certainly be easier to buy Bitcoin if we retreat in order to find some value that would be beneficial. The $ 12,000 level would be ideal, but unfortunately we may not get it but in the short term.
The reason I like the $ 12,000 level so much is that it’s an area that we’ve been through before that hasn’t been retested. The 50-day EMA below hits the $ 12,000 level, which is another important rationale. These are good reasons to stay a long time if we withdraw from there. In this case, the market is likely to continue its uptrend at this point as it shows you that a lot of momentum is still going on in the market. I believe we will go higher, but again I prefer withdrawals as it offers an opportunity to gain value.
The $ 14,000 level above should be resistance so if we break above it opens the markets for a move towards the $ 15,000 level. This is a large, round, and psychologically significant number and I think it will attract some attention. The market has gotten ahead of itself, so if we just get the upper hand, you’d be forgiven for just waiting on the margin for another opportunity to buy on the dips. Bitcoin has a long history of rapid pullbacks on withdrawals, and it has enough volatility that sooner or later you’ll have a chance to buy it for less. Pay attention to the US dollar, as it will have a major influence on what happens with Bitcoin; the negative correlation has been quite strong lately. I have no interest in trying to short a market that looks like this.