Bitcoin did very little during the trading session on Friday, as we continue to hang about low levels. In fact, I find this interesting in general, because while the market has slowed down, we have not picked up volume either. In other words, the balance I believe is simply a lack of selling, not some type of resurgence of buying. I believe that we will see this market rise over the next couple of sessions, only to find sellers again, especially near the $7000 level.
Bitcoin continues to be the place where money goes to die, as there is no momentum. I believe that the downtrend line above continues to keep this market somewhat negative, but at the same time the $6000 level continues to be massive support. We are coming relatively close to the apex of the descending triangle, so we need to make a decision relatively soon. If we don’t, then the market will probably simply drift sideways more than anything else, and I think at that point you could make a case for buying as an investment. However, right now there’s no point in doing so, because certainly the danger is to the downside at this point.
Things would change immediately if we broke above the $7500 level, and most certainly if we broke above the $8250 region. Once we can clear that level, then we could go to the $10,000 level. However, the trade has been the same for months now: simply wait for signs of exhaustion on a rally to start selling the short side again. If we do break down below the $5800 level, then I think the market will break down to the $5000 handle.
