- During my daily analysis of financial markets, Bitcoin captured my attention due to the fact that we have bounce significantly from the 50 Day EMA, which sits near the $93,000 level, and is rising.
- At this point, it looks like we are trying to get to the $100,000 level, an area that is not only a psychologically significant figure, but it’s an area that has proven itself to be important multiple times in the past.
All things being equal, this is a market that I believe you continue to find plenty of buyers on dips, and that does make a certain amount of sense that we are starting to see the market turnaround.
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Furthermore, there was a bit of a “Santa Claus rally” on Wall Street, and I think that institutional traders may be looking at this through the prism of a market that is not only been supported by Wall Street, but also by the latest MicroStrategy purchases, and of course the fact that traders who manage money for other people will have to explain that they of course are involved in Bitcoin at this point.
Technical Analysis
With the size of the candlestick during the trading session on Tuesday, I think you’ve got a real shot at the market, try to break above that $100,000 level again, and once we get above there, the $107,500 level could very well end up being the next target. On the other hand, if we were to pull back from here, the 50 Day EMA could be support, but a breakdown below there then has the $90,000 level being the beginning of support down to the $88,000 level. Anything below there of course would be very negative, but the way the market has been behaving as of late, I do think that we have a situation where it’s likely that we will see a bit of “FOMO trading” in the beginning of the year.
Between now and New Year’s Day, I do anticipate that things might be kind of messy, but I still favor the upside overall. After all, Bitcoin has captured the imagination of the institutions, and of course we have seen a massive move higher over the course of the year. I just don’t see how this changes anytime soon, but of course you have to be careful with the inherent volatility.
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