- During my analysis of Bitcoin, the first thing that comes to attention is the fact that the $100,000 level continues to be very important.
- This is obviously a large, round, psychologically significant figure, and I would venture to say there are probably a lot of options traders willing to get involved here.
- Furthermore, retail traders do seem to like these large, round, psychologically significant numbers, so the fact that we are starting to see a bit of support at the $100,000 level for the second day in a row is not a huge surprise.
When I look at this chart, it’s obvious that the Thursday session did a significant amount of damage, but we are sitting in an area that obviously has been important multiple times, so it’s not a huge surprise to think that perhaps the market will see some interest. That being said, if we were to take above the top of the candlestick from the Thursday session, that would be confirmation that the market is ready to bounce a little bit higher.
Technical Analysis
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The technical analysis for this BTC/USD pair is obviously very bullish, but the Thursday candlestick of course will have scared quite a few traders out there. Those who are highly levered are probably worried, but those who are just simply holding spot Bitcoin are probably okay. If we do break down below the bottom of the candlestick for the trading session on Thursday, then it could send this market down to the $95,000 level. Regardless, the market is still very bullish, as the 50 Day EMA is near the $92 level.
I think that liquidity could be a bit of an issue as well, as we start to head into the holiday season. Nonetheless, I also believe that any time that Bitcoin pulls back, it’s likely to attract a certain amount of attention in people will be willing to take advantage of any “perceived value” that they see in the market.
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