I do not see any reason to think about shorting this market anytime soon, it is obviously very bullish and should continue to be so.
The Bitcoin market has gone straight up in the air for several days in a row, but the Thursday session was rather quiet. This is a market that has needed to see some type of slow down because it had gotten so parabolic. At this point, the $55,000 level looks to be offering resistance, but I think that is simply a speed bump along the road to higher pricing.
A pullback makes a certain amount of sense, and I would anticipate that there should be a certain amount of support in the neighborhood of $50,000, which is a large, round, psychologically significant figure and an area where we have seen some action in the past. The fact that the jobs number comes out on Friday could have a little bit of an effect on the US dollar, which could be a bit of a knock on effect over here as well, albeit somewhat minor.
If we were to break down below the $50,000 level, I think there is support extending down to the $38,000 level. To the upside, the market is likely to continue to see a lot of volatility, but I think we would go looking towards the $60,000 level, this of course was where we had seen a major amount of selling pressure previously, and it certainly looks as if we are trying to get to that area. Whether or not we can break above there is a completely different question, but it is worth noting that the market had lost roughly 50% of its value, and now plenty of value hunters get excited about owning Bitcoin yet again. Furthermore, we have seem to have forgotten all about the issues in China, which was a major driver of the market to the downside. It looks as if we continue to be in a “buy on the dips” type of scenario, and with that I think it is only a matter of time before any pullback gets bought into. I also do not see any reason to think about shorting this market anytime soon, it is obviously very bullish and should continue to be so. Just because we slowed down a bit on Thursday does not mean that anything has changed significantly, rather that we just run out of short-term momentum.