Bitcoin initially fell on Wednesday, but found enough support at the $4350 level to bounce and continue the up move.
Ultimately, the $4600 level looks to be offering a bit of resistance, but if we can break above there I feel that the market can go much higher. At that point, I would expect the market to go looking towards $5000 again although I would also anticipate several pullbacks between here and there.
I see a significant amount of support underneath, so even if we do fall a bit from here, it’s probably going to be very little time before the buyers come back.
Continuing to buy on the dips
This has been a “buy on the dips” market for some time, and that looks to be more of the same coming. I think that given enough time we will not only reach the $5000 barrier, but we will probably break above there. This will be especially true if the Forex world continues to dump US dollars, which has been a theme for quite some time.
Alternately, if we do not see the US dollar lose value in the Forex world, it could take some of the luster off Bitcoin, as it would be one less fundamental reason for this market to continue to gain strength. Overall though, I would say that the uptrend is very much intact when it comes to Bitcoin although we have gotten a bit overstretched during 2017.
If you have a long enough time horizon, short-term pullbacks, even though they have been as high as 14%, will be thought of as buying opportunities and perhaps of value. Currently, I believe the “floor” in the market is down at the $4000 handle, which is a significant drop from here.
This remains a market that you can only buy or be on the sidelines. Selling isn’t possible.
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