Bitcoin markets did very little during the trading session on Wednesday, as we continue to dance around in the descending triangle. At this point I think the market has essentially gone to sleep, and although we had a surge of volume during the session on Monday due to reports about Fidelity investments creating an exchange for institutional investors, the markets have dropped back to low volume since then. At this point, I think that we are probably just simply going to go sideways in general, but this downtrend line has been respected so far.
If we can break above the top of the Monday candle, then I think the market could be free to go higher, perhaps reaching towards the $8000 level. Overall though, I think that the market would need another catalyst to start doing that with any type of vigor.
If we break down below the support level underneath, that extends from the $6000 level down to the $5800 level, then the market could unwind rather drastically down to the $5000 handle. In the meantime though, I think the most likely scenario is probably going to be that the market simply go sideways. If that’s the case, look for this market to do almost nothing in the short term. We would just simply go sideways grinding above the $6000 handle. There is no catalyst for Bitcoin to do anything at the moment, so although I am hearing whispers of various catalysts coming towards the end of the year, the reality is that we hear this time and time again and they have yet to produce anything.
If you are a longer-term trader, then of course you could simply buy-and-hold from here, but as far as trading is concerned this market is getting much more difficult to make a profit and as there is no volatility.
