Bitcoin markets fell slightly during the trading session on Tuesday as we continue to respect that the downtrend line just above, and of course respect the support underneath. I believe that we continue to see a market that simply has nowhere to be, and I think at this point we still have the same three scenarios that I have been talking about for well over two months now:
Scenario one: we break above the top of the downtrend line, and reach towards the $7000 level, followed by the $7500 level, and then eventually the $8250 level above there. Having said that, the problem is that there isn’t much of a reason for the market to go higher. (Full disclosure: there doesn’t seem to be a reason for markets to go lower either.)
Scenario two: we break down from here and sliced through the $6000 level, an area that has been massive in its significance and support for quite some time. If we were to break down below there and possibly even the $5800 level, I think that we are more than likely going to see the bitcoin market reached towards the $5000 level. That’s an area that of course will attract a lot of attention because it is so perfect as far as a “round, large, psychologically significant figure”
Scenario three: we could just simply drift sideways. If we do that, it’s likely that the market will do nothing for quite some time as we simply wait for some reason to move in one direction or the other. I think at that point, we would simply drift sideways for months on end. The lack of volume in this market could very well lend itself for scenario three more than anything else, but obviously headlines could jump into the psyche of traders, and push us in one direction or the other.
