The bitcoin market rallied a bit during the trading session on Tuesday, bouncing from the bottom of the channel that we have been in. Beyond that, there is a lot of different reasons to think that we will continue to go higher, at least based upon the chart that I have in front of you.
Looking at the chart, you can see that the 200 day EMA is just below, sitting right above the $5000 level. That is an area that attracts a lot of attention regardless, so there are plenty of reasons to believe that this market will continue to find buyers, so at this point I believe that we will probably make a move towards the $5600 level above. That is an area that will cause a bit of resistance based upon the previous selling pressure, and of course the top of that channel that I have mentioned.
Bitcoin has made a huge change in direction over the last month or so, and with decent volume. We had not seen much in the way of volume when it came to bitcoin for the longest time, so at this point the fact that volume has picked up as price is rising is a very bullish sign. Quite frankly, I think we are trying to form and uptrend again, with the $6000 level above being the next major barrier to overcome.
If we do break down below the $5000 level, I believe that there will be plenty of buyers near the 50 day EMA, which sits at the $4650 region. All things being equal, even though I’m not a believer of Bitcoin, I believe that the charts do tell me that we are going to go higher.