BTC/USD
Bitcoin markets were very choppy during the trading session on Friday, as we continue to do very little. Ultimately, this is a market that is trading in a very tight range and that’s why I’m starting to show hourly charts instead of daily charts as per usual. The market has done very little in the term of the larger picture, so short-term scalping is probably all you can do at this point. The $6500 level above is resistance, while the $6250 level below is support.
Looking at this chart, I can see that incremental change in this pair is very slow. I think that the markets are still waiting for some type of the larger catalyst, but we don’t have much in the way of news flow to propel this market in one direction or the other. I think at this point, the market will probably continue to find a lot of back-and-forth action, so if you are able to scout this market and pay attention to short-term charts, you may do okay. As you can see on the hourly chart, there are increments of $50 for minor support and resistance, so you should keep that in mind as well.
Most traders that deal in the crypto currency universe continue to wait for some type of momentum, but right now we simply don’t have it. If you are a longer-term “buy-and-hold” trader, then you may have the opportunity to pick up bitcoin on the cheap here, but right now I think this is being driven by short-term distribution more than anything else. I don’t like trading these markets because there simply is not enough volatility but then again if you have the ability to get in and out in small increments, money could be made.
