The Bitcoin market was relatively quiet during the Friday session as we continue to hang around the 50-day moving average. As a result, it looks as if the market is trying to stabilize a bit. This is exactly what the bullish traders need to see, as the market had sold off rather drastically on Tuesday.
Now that we have seen a little bit of stabilization, I suspect that true believers will start to re-enter the market. After all, we are in a significant uptrend, and even with the nasty selloff on Tuesday, nothing truly has changed. I still believe that the $50,000 level continues to cause major issues, but at the end of the day we have broken above it more than once. With that, it is more than likely going to be yet another signpost along the way to reach towards the all-time highs again.
Ultimately, I do think that we will get all the way to the $60,000 level and perhaps even break out above there. However, we also need to look at the possibility that we'll go a little bit lower and test the $40,000 level for support. That's an area that had been quite a bit of resistance previously, so we have to test the so-called “market memory” in that general vicinity. Breaking down below that level could open a move down towards the $30,000 level and would jeopardize the entire uptrend.
As things stand right now, this is a market that certainly looks as if there are still plenty of people willing to come in and support it. Yes, it was a rough week, but when you look at the totality of the market, it's not hard to see that there are still plenty of people out there willing to buy Bitcoin. Because of this, I think we still have to develop a buy-on-the-dips type of attitude, because shorting this market has been very dangerous to do over the last couple of months. Yes, some of the weaker hands had to be taken out, but now I think that most of them are gone. On a move higher, I would feel relatively comfortable incrementally adding to a long position. As far as selling is concerned, I don't see an opportunity at this juncture.
