When we last posted the bitcoin market was trading at $104 support and over a quiet weekend, nothing has changed.
Here's the chart:
On the one hand, if new buyers continue to come in at these levels we are going to see the market pick up momentum with $112 very much in view.
Having said this the first move may be down and it wouldn't surprise us to see a fall to around $101 before the next buying wave triggered. Any lower that here and $97 comes into view as bears gather confidence.
Essentially what we are seeing represents a classic consolidation phase within a trend and this can be unsettling for all participants. It is a condition in which false signals can and will be thrown out. While active traders may want to chance a short term play back down to lower support this is a risky counter-trend strategy which will bite all but the most attentive.
This in mind our advice would be to stay long until or unless we see a convicted break back through $97.