Bitcoin fell slightly during the day on Wednesday, reaching below the $3300 at one point. However, we turned around at the $3200 level, to show signs of resiliency. If we can break above the $3350 level, the market should go looking towards the $3500 level after that. This pullback has found plenty of support, so I do believe that we will eventually go to the upside. I have no interest in shorting this market, as the resiliency of the support should continue to provide a little bit of a lift. The pullback has been healthy, because the market needs a little bit of momentum building to continue towards the $3500 level. Once we break above there, the market will be free to go even higher, but obviously the $3500 level will cause a bit of psychological resistance.
US dollar influenced
The US dollar course has quite a bit of influence in the BTC/USD pair, as Bitcoin is often used to escape the greenback. Ultimately, this is a market that should continue to find volatility but an upward bias. Once we break above the $3500 level, we can also add a core position, which should continue to be more of a “buy-and-hold” situation. If we break down below the $3150 level, the market and then will probably go looking for the $3000 level but we would need to see US dollar strength in the Forex markets for me to believe this. I believe it will be choppy, but overall, I think the buyers are trying to build up enough momentum to finally take out the $3500 round figure that will cause so much resistance. By adding slowly, you may be able to ride out most of the volatility that you would be susceptible to experiencing in a market that looks likely to see so much.