#Bitcoin has had a bad session on Tuesday, as the $19,000 level is starting to look to be a bit too resistive. The market fell towards the $18,000 level, losing about 5% on the day. There is support below though, but I suspect it’s probably a little bit lower than where we have fallen towards.
Bitcoin has gone sideways initially during the trading session on Tuesday but then broke down towards the $18,000 handle. I think that the $17,000 level is probably more supportive, and the one thing that I would point out is that the candles with the most volume during the trading session were all negative. This is typically a very bearish sign, so I do not think that we will make a fresh, new high, Least, not in the short term. I anticipate that the market needs to find buyers underneath and perhaps a bit of value before it can turn around. Once it does, it’s almost a given that the market will be looking to reach the $20,000 handle. However, this is not a normal market, as we have gone 20 times in value to the upside, which is something that is positively not sustainable.
Because of this, I think that we will eventually see a significant selloff, and that will probably scare a lot of retail money out of the market, more than likely at a loss. That will speed up the panic, and we could see another 20% drop coming relatively soon. Because of this, I would be very careful with trading Bitcoin, especially considering that we are in the middle of the holiday season, which has a negative effect on volume and liquidity as well. This is a market that is thin, to begin with, so it’s possible that the moves could be even more exaggerated than usual in some type of geopolitical issue, liquidity event, or another headline. If we do rally from here, I still believe that is going to be difficult to break above $20,000 anytime soon. I believe that the next couple of days could be very quiet.