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Bitcoin Forecast: Pulling Back Toward Support

The Bitcoin market has stalled out a bit during the trading session on Tuesday, digesting the gains from the positive Monday session. By doing so, it suggests that we could see a little bit of a pullback, which is not necessarily bad news, as the market needs to sustain the rally. The market is likely to continue to try to reach towards the top of the ascending triangle that we are currently trading at, but do not be surprised at all to see the market pull back towards the uptrend line underneath. This would essentially mean trying to take out about 75% of the daily candlestick from the Monday session.

Bitcoin continues to see a lot of interest due to the fact that it had recently rallied again, and I think technical traders are paying attention to a handful of issues right now anyway. The first one of course is the ascending triangle that the market is currently formed in, and we are using the uptrend line as support. Beyond that, the 50 day EMA sits just below this uptrend line and it should offer a significant amount of support as well. Furthermore, we have recently seen the “golden cross”, which tends to attract a lot of longer-term “buy-and-hold” type of traders. Beyond that, we also have the $10,000 level above which of course makes for good headlines.

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Speaking of the $10,000 level above, if we can break above the $10,500 level, it is likely that we will continue to go much higher, breaking out towards the $11,000 level, followed by the $12,000 level. This is what I expect to see but that does not necessarily mean we are going to see it right away. Currently, it looks as if Bitcoin is going to be offering value on dips, so I think that there will be buyers every time we pull back just a bit. With that in mind, I think that looking towards these dips as opportunities to “scale in”, and take advantage of the complete upward momentum is probably the best way going forward, and I do think that you will get several opportunities to do so along the way. Once we do break out above the $10,500 level, we could see a pretty quick move to the upside. As far as selling is concerned, I do not have any interest in doing so at the moment, but I will let you know if that changes.

This article was originally published on DailyForex.com

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