BTC/USD
The Bitcoin market tried to rally during the day on Friday but turned around to form a shooting star again. At this point, it’s obvious that the market doesn’t seem to have any type of directionality, and I think at this point the longer-term downtrend is continuing to hold the market down. On the other side, we have the support level at the $6000 level that has held true for some time, and as I have been saying since the beginning of February, this is a market that seems to be sold off every time it approaches the trend line. However, the $6000 level has been crucial as well, so it makes this market very difficult to put a lot of money into right now unless of course, you are going for a huge trade.
On a break down below the $5800 level, the market will unwind to the $5000 level rather quickly. Ultimately, that’s what should happen, based upon the descending triangle. However, this is a market that has been awfully resilient at the $6000 level, so there is the possibility that we turned around to break above the downtrend line. If we break above the $7000 level, is very likely that we go looking towards the $7500 level, and that eventually the $8250 level. There is also the possibility that we simply drift through the apex of the triangle, which essentially negates the pattern and could begin a longer-term basing pattern.
Ultimately, this is a market that has no general desire to go anywhere right now, so it’s essentially “dead money.” Gently trade that I have seen for some time has been selling these rallies for quick shorts, but relatively soon I would expect that we need to resolve the triangle.
