- During my daily analysis of Bitcoin, it’s obvious that every time we dip, there seems to be a certain amount of traders out there that will be willing to take advantage of making some profit.
- That being said, the market is likely to continue to see a lot of noisy behavior, which makes quite a bit of sense that we would see consolidation after a huge move like we have had over the last several weeks.
Consolidation Range
I believe that the most obvious area of consolidation that you can point out is between the $90,000 level below, and the $100,000 level above. It certainly looks as if the buyers are going to remain rather resilient, and as a result I think you have to look at this from the prism of a market that is trying to do everything it can to build up the necessary momentum to break out. That being said, it’s probably worth noting that the $100,000 level is a large, round, psychologically significant figure, and of course an area that I think will attract a lot of headlines attention.
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If we can break above that level, then I think you will see a lot of “FOMO” into the market. If and when we can break out above there, the market is likely to continue going much higher, in the short term move is probably a $10,000 range, due to the fact that the “measured move” of the consolidation is exactly that. This is not to say that I think Bitcoin stops at the $110,000 level, it’s just that it might be a target for buyers.
On the other hand, if we were to break down below the $88,000 level, we might be ready for a deeper correction. The 50 Day EMA is sitting right around the $84,000 level, and then you have the $80,000 level after that. The $80,000 level obviously is a large, round, psychologically significant figure as well, and I think after that 20% drop, there’s a lot of people who would be interested in buying perceived “value.”
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