Bitcoin markets rallied slightly during the trading session on Friday, bouncing from the $6200 level. However, there is a significant amount of support underneath as well, so I think it makes sense that perhaps we would continue to climb over the weekend. We have a massive downtrend line as you all know on the daily chart that continues to offer selling pressure. I think we will probably struggle at the $6500 level, and at the first signs of exhaustion I’m sure people will be jumping out of any long positions they are involved in. Otherwise, we could turn around and break down below the support level below which extends from $6000 to the $5800 level. If that happens, I think the market then breaks down to the $5000 level.
Looking at the massive descending triangle, we could also find ourselves going sideways and breaking through it. If that’s the case, the market probably simply go sideways in general. I think there is a significant lack of interest in this market as of late, and it seems as if the only days that have any significant volume are negative. Overall, I think that the market probably continues to see a lot of back-and-forth choppy trading, simply because there are less traders involved. If we do break to the upside, in clear the downward trend line, I think we will be looking at the $6750 level, the $7500 level after that.
Ultimately, I think that it’s going to be difficult to put any serious money into this market, and if you are a true believer of Bitcoin you are probably better off just buying and hanging onto it. That’s not to say we won’t break down, it is not to say we won’t melt up. However, we need volume more than anything right now.
