Bitcoin Price Analysis (BTC/USD) August 24, 2017

Bitcoin initially was very sideways during the day on Wednesday, hovering the $4050 level. We have broken higher from there though, reaching towards the $4250 level.That’s an area that is minor resistance, and I think that a pullback from here should find plenty of buyers underneath.

Bitcoin seems to have cleared a significant resistance barrier over the last 24 hours, showing signs of life yet again. This continues to be a “buy the dips” type of scenario, and certainly nothing looks any different on this chart at this point. I believe that we will continue to reach towards the $4400 level the short term.

Buying the dips

Buying the dips going forward should continue to be the best way to play this market, and I believe that adding slowly helps as well, as it helps you go through the volatility. I also believe that we not only reach towards the $4400 level, but reach towards the $4500 level above there.

Ultimately, this is a market that will be driven by external influences as well, including what the US dollars going in the Forex world. Never forget that this is simply yet another measure against the US dollar.

With the Jackson Hole Symposium going on, there will be central bankers speaking over the next couple of days, which will certainly move the US dollar as well as other currencies. If the statements tend to be very dovish, that should help the crypto currencies going forward. I still believe that the absolute “floor” in the market is somewhere near the $3600 level, and it isn’t until we break down below that level that I would consider selling this market. Ultimately, I think were more likely to see the 5000 level before we reach down to that low area. The buyers are still resilient.