Potential signal:
- I believe that Bitcoin is going to rally from here, so I have no problem buying it.
- I would have a stop loss near the $59,000 level and aim for the $72,000 level above. This is a simple range bound play.
- Bitcoin rose during the trading session on Tuesday, bouncing from the crucial $60,000 level.
- In fact, the bounce has been quite violent, so that does suggest that there are plenty of people out there willing to get involved and start buying again.
- With that being said, I think that we are going to see a lot of noisy behavior in this general vicinity, but over the longer term, I do think that Bitcoin is doing everything it can to stay within the overall consolidation area that it is been in for some time.
Technical Analysis
The technical analysis for this pair is somewhat sideways, and it’s probably worth noting that the market has been stuck for 4 months now. We initially shot straight up in the air to the $73,000 level, gaining 92% in just 6 weeks as Wall Street announced that there was going to be an ETF due to an SEC failure to shut it down. This had money flying into the market, and we have since seen a lot of back and forth behavior that quite frankly has been very difficult to deal with unless you are range bound trader.
Having said that, we have had enough momentum bounce to the upside that it looks like it’s time to start buying again, and we will have to wait and see whether or not we can break above the wipeout candlestick from the Monday session, and then perhaps the 50-Day EMA. After that, we have the $67,000 level, which is an area that we have seen a lot of noise at previously. If we can break above there, then you have a potential move to the $73,000 level which was where we slammed into from that surge higher.
I think Bitcoin continues to try and search for what it’s going to be, and therefore I think there is a lot of questions out there asked about whether or not it is actually going to be viable. One thing is for sure, Wall Street is involved now, so somebody somewhere is going to make money off of Bitcoin, regardless of whether or not it actually has any value.
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