The Bitcoin market fell a bit on Friday to go looking towards the $60,000 level. This is an area that will attract a lot of attention, from both a headline perspective and a structural perspective. The market has been overbought for a while, so this pullback does make sense. Nonetheless, I do not see this as a selling opportunity, rather an opportunity to pick up a little bit of value underneath.
The $55,000 level would be the next major support cluster, followed by the $50,000 level. The $50,000 level is also backed up by the 50-day EMA, psychology, and a lot of structural support. With that being the case, the market is very likely to continue seeing multiple support levels underneath that could come into play. Obviously, Bitcoin is in a very strong uptrend, and because of this it is very difficult to fight. I think there are enough people out there looking to pick up bits and pieces of value on dips that it is only a matter of time before recovery.
I am looking for a daily candlestick that forms something akin to a hammer, or some type of turnaround overall that can be taken advantage of. Whether or not the $60,000 level holds really does not matter, because there are so many areas that could come into the picture. The US dollar did get a little bit of a boost during the day on Friday, so this may be a bit of a “knock on effect” in this market, but at the end of the day the US dollar has been struggling against several things, not the least of which would be this market. When I look at this chart, it looks very strong, despite the fact that we have had a significant pullback in the last 48 hours. Buying bits and pieces along the way probably continues to be the best way forward, and I think it is only a matter of time before we turn around and start rallying towards the $70,000 level. That area is my intermediate target, but we may have to find a little bit of value to make that happen going forward. On top of that, if Bitcoin can rally, that will also help a lot of the alt coins.
