BTC/USD
The bitcoin market has fallen again during trading on Monday after initially trying to reach towards the $6450 level before rolling over. At this point, the market looks likely to reach a bit lower, as the market has seen so much in the way of consolidation lately. Beyond that, bitcoin is certainly a short-term traders market, which in the meantime is probably the best way to trade this market. However, we may eventually break out, and if we do then the market participants will see significant volatility pickup. However, we just don’t have anything in the way of a catalyst right now to push this market around so I’m not holding my breath.
$6500 above is massive resistance, so a break above there of course would catch a lot of traders off guard. I think that the $6250 level underneath is also very crucial, and then we would probably see the $6000 level being supportive. I believe that this market continues to be very choppy to say the least, so it comes down to whether or not you can trade in a short term manner.
At this point, I suspect that CFD markets are probably the best way to trade bitcoin, because that eliminates a lot of the hassles with dealing with an exchange. Beyond that, you can’t get hacked so you don’t have to worry about losing the coin. Also, it allows you to fill a position much quicker, which is what you’re going to need to be able to do in order to take advantage of this type of market. I do not believe that bitcoin is ready to go anywhere of significant distance in the short term, so I believe we just simply bounce around in this area, perhaps pulling back slightly today.
