Bitcoin markets continue to show signs of inactivity as we simply can’t go anywhere. We have a major downtrend line just above that should continue to cause downward pressure, but we also have a significant support level underneath at the $6000 level that continues to keep the market somewhat afloat. I think at this point, it’s almost impossible to place anything more than a short-term scalp in the market as we simply don’t have the volume or the price action to justify putting serious money to work. I think at this point, it the three scenarios that I have been talking about for some time are all still valid, but I think we are simply going to drift through the side of the descending triangle. I suppose that’s probably more bullish than bearish, but only just so.
If we can break above the trend line, then that would obviously be very bullish and I think we could continue to reach towards the $7500 level, the $8250 level, and then possibly the $10,000 level after that. On the other hand, if we were to break down below the $5800 level, which I see as the bottom of the “zone” of support underneath, the market could very well fall down to the $5000 level rather quickly. This is a market that could do either, but at this point I just don’t see the interests.
Volume continues to dry up, and therefore I think that we are probably entering a phase of typical malaise in a market that has no direction. There’s no reason for Bitcoin to rally, but there hasn’t exactly been a reason to fall apart yet either. In other words, this is kind of like trading the thirty-year treasury bonds, slow.
