BTC/USD
Bitcoin rallied slightly during the trading session on Friday, as we continue to go back and forth around the $7000 level. This is an area that continues to be very noisy and difficult to deal with, and because of this I think that the market will continue to be very choppy and rudderless. Overall, I think that we will continue to see volatility in this pair, as the crypto currency markets simply cannot seem to get its act together. I believe that the $6000 level underneath will continue to be massive support, and it’s not until we break down below there that we get clarity, or if we can break above the uptrend line that we have been underneath for the entire year. We are getting two an area where something has to happen, but at this point we continue to have lower highs, a very bearish sign indeed.
Beyond that, the US dollar has been strengthening, so that also could put some negative pressure in this market. Overall though, I think that the market is simply trying to find a catalyst for its next move. There have been several false starts when it comes to ETFs, and other bullish scenarios. But we have not had is some type of negative scenario pop-up. At this point, I think it’s good to be very difficult to predict where we go longer-term, but short-term traders can continue to short this market as we still haven’t made a very bullish move. Overall though, I would hang on to any trade for a significant amount of time unless of course you are a long-term believer and investor, which your best bet is to simply ignore the charts and hang on for a few years, hoping that wider scale adoption does in fact happen.
