- Bitcoin remains capped near $92,500 after an early Thursday rally faded, with recent sharp selling still weighing on sentiment.
- While a potential double bottom offers hope, traders await clearer confirmation before calling a sustained bullish shift.
Bitcoin is continuing to struggle with the idea of going higher, and it is worth noting that although we tried to rally early on Thursday, things have turned around, and it looks like the $92,500 level continues to be a bit of a barrier and a potential magnet for price at the same time. Bitcoin has recently sold off quite drastically, and I think this is something that you need to be cognizant of because on these bounces, although they may be strong and pick up a few thousand dollars pretty quickly, we still have a long way to go before the trend changes. We are in the midst of potentially forming a bit of a double bottom, so that obviously is a good sign.
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But I think you've got a way to go before you can call this a bullish market. Bitcoin, of course, is pretty far out on the risk appetite spectrum. And there seems to be a lot of concern out there when it comes to risking a lot at the end of this year.
Major Support and Overhead Barriers
The $80,000 level has recently offered a massive floor in the market, so one would have to think that if we break down below there at all, things could get very ugly very quickly. To the upside, if we do break out and start rising, the 50-day EMA sits right around the $98,500 level. And of course, we have the $100,000 level sitting right above there.
This is an area that I think would be difficult to break above. And if we did, then obviously, I think a lot of things would change. Ultimately, though, this is a market that if you are bullish longer term, maybe you look at the pattern that we are in right now as potential accumulation. But I'm not looking for anything major at this point. I think a little bit of sideways action in confidence-building is probably the best thing that could happen to the Bitcoin market.
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