Bitcoin markets rallied a bit during the trading session initially, reaching towards the $14,000 level. I think that the market is trying to break out of a descending triangle that we are forming on the hourly chart, and if we can clear the $14,000 level, I think that the market will continue to go higher, perhaps towards the top of the consolidation area that we have seen since just before Christmas, which means that we would go to the $16,000 level above. Ultimately, this is a market that breaking above the $16,000 level would signify a massive shift to the upside.
BTC/USD Video Video 03.01.18
Ultimately, if we break down below the session lows, we could go drifting towards the $12,000 level which is the bottom of the descending triangle. A breakdown below the bottom of the descending triangle would send this market down to the thousand dollars level, as it is $4000 “tall.” The $8000 level is roughly 50% of the move from the bottoms, so it’s possible that we get this move and then the buyers return. Bitcoin markets have been very bullish until the last couple of weeks, which coincides with the futures markets opening. I find that interesting, because I believe that there are plenty of short-sellers out there in the industrial space that are benefiting from the need for retail traders to jump in. I think that institutional traders will be much more interested closer to towards the 50% Fibonacci retracement level, but having said that, if we were to break out I must follow that move as well. Keep an eye on this triangle, it could give us an idea as to where we go next.