- Bitcoin has shown itself to be rather sideways and quiet during the trading session here on Thursday as we are sitting just above the crucial 50-day EMA and trying to absorb a lot of the bullish pressure that we had seen from the previous candlestick on Wednesday.
- At this point, it’s obvious that central banks around the world are thinking more loose than tight, and that should, at least in theory, help Bitcoin go forward.
- Ultimately, we could go looking for the next little area of resistance that I see at the $117,000 region, followed by the $120,000 level, which, of course, is a large round psychologically significant figure and an area that a lot of people have paid close attention to in the past and could cause a few people to react.
In the Long Term
Over the longer term, I’m not really sure that I would be comfortable shorting Bitcoin because it is an institutional asset now. After all, we’ve gone from the lower left to the upper right for quite some time, especially as Wall Street is involved and now it’s their toy. They won’t let it fall too far. The $110,000 level is an area of significant support, and it does look like we have tried to bounce from there.
We haven’t really seen a massive move, but we’ve seen enough to at least make it interesting. All things being equal, this is a market that given enough time should continue to see a lot of choppy volatility, but I still think it is a market that you’re looking to get long in, not short.
So, pullbacks could be thought of as value. In fact, I’m not really interested in shorting Bitcoin until we break down below the $105,000 level, which is basically where you see the 200-day EMA.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
