Bitcoin fell during the course of the trading session on Thursday to show signs of weakness, as the market has reached towards the 56,000 level only to turn back around. It should be noted that the range for the day was extraordinarily tight, so it does suggest that perhaps we are simply killing time. If we can break above the top of the candlestick, then I think we go looking towards the $60,000 level again. The $60,000 level of course is a large, round, psychologically significant figure, and one that we have to pay close attention to. Clearing that level opens up the possibility of a bigger move to the upside.
Bitcoin is still very much in an uptrend, so I do not think that we need to worry too much about the idea of things changing, but we could get a short-term pullback. In the short term, I believe that the $53,400 level should continue to be supportive. Even if we break down below there, the $50,000 level will attract a lot of attention as one would expect, being both a psychologically important figure, and an area where we had previously seen quite a bit of resistance in the past.
At this juncture, I believe this pullback has been very healthy, and what will be a longer-term uptrend. There is a lot of talk out there about four year cycles for Bitcoin, but quite frankly that has a lot to read into past trading, because quite frankly Bitcoin and crypto itself has not been around long enough to make something that has happened in some type of synchronicity as gospel. In fact, that is probably the one bearish thing that I see in the market right now is the fact that everybody’s expecting December to be some type of melt up.
Do not get me wrong, I think crypto is far too volatile to trade, and therefore I am more of an investor. If it falls a bit, I am willing to buy more. If there is one thing the crypto has taught us, and most certainly Bitcoin, is that every time it looks like it is on the ropes, it turned right back around and rally again. With that being the case, I fully anticipate that we will see $70,000 sometime in the next couple of months again, and break out to go even higher early next year.
