Bitcoin Price Analysis (BTC/USD) August 9, 2017

Bitcoin had a slightly positive session early on Tuesday, touching the $3500 region. That is a large, round, psychologically significant number, so it’s not a huge surprise that we pulled back slightly. Ultimately, I do think that we can get above there but it’s going to take several attempts. That makes quite a bit of sense, as it is a large number and that often has people taking profit. Ultimately, I think that pullbacks offer buying opportunities, and that we will eventually build up enough momentum to break out to the upside.

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Support below

As you can see on the chart, there is a pink line at the $3300 level, an area that previously offered a significant amount of resistance. The market should now offer quite a bit of support there, so I think that it will be the “floor” of the market that is trying to keep this market boy and enough to break out. Ultimately, if we can break above the $3500 level, I feel that the market is probably more of a “buy-and-hold” type of situation, and then eventually could offer several opportunities to buy this market on short-term dips as well. I would be a bit cautious about going “all in” into the Bitcoin market, as we could probably pull back and add little bits here and there to the position, thereby protecting your account, while building up a large enough position to make serious gains. If we were to break down below the $3300 level, I think there is a significant amount of support underneath extending down to the $3200 level. This is a market that is positive, but of course will have the occasional pullback, so do not get shaken until we break down below the $3200 level. If that happens, I believe we will probably go looking for 3000.