- Bitcoin continues to see a lot of back-and-forth trading on Wednesday, as we are trying to build a consolidation area.
- Bitcoin continues to look very noisy during the Wednesday session, as Christmas Eve trading will be a little thin.
- But at the end of the day, you have to keep in mind that Bitcoin is different than most other markets because we could get a big move on Christmas, mainly due to some type of external factor and low liquidity combining.
We will have to wait and see how this plays out, but as things look right now, I think Bitcoin is one of your more interesting markets because a lot of the froth has been taken out of it. But when you look at the history of Bitcoin, it does this kind of thing quite often.
Market Outlook and Key Support Levels
At the moment, it looks like we are trying to figure out whether or not we are consolidating or if we are getting ready to make the next move lower. Consolidation or, perhaps I should say accumulation, is what I suspect we are doing, but we will have to wait and see. It certainly looks like a market that is struggling to hang on to any type of upward momentum.
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But if we were to break above the $94,000 level, then I think you have got a real shot at this market going to the $100,000 level and probably even beyond there. If we were to break down below the $80,000 level, then it is possible that we could go down all the way to the $68,000 level.
One thing is for sure: there is not a lot of momentum in this market, and therefore, if you are a longer-term trader, you are probably accumulating in this messy behavior. Institutions, of course, won't be involved as much, mainly due to the holidays, so we will have to see what the retail traders can do. With all that being said, I am cautiously optimistic, but $80,000 for me at least is a red line.
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