Bitcoin has sluggish momentum during the trading session on Thursday, but quite frankly this market has gone straight up in the air for a while, and it does make a certain amount of sense that we would take a bit of a breather.

Bitcoin Technical Analysis

Bitcoin initially did rally during the trading session here on Thursday, but it gave back some of the gains. Now, I wouldn’t make too much of it other than it is a market that is stretched. Ultimately, this is a scenario where you have to look at it through the prism of being very cautious and perhaps trying to find some value.

I think the value play is what you’re looking for at the moment. Ultimately, we will probably go towards the 75,000 level, it’s the next large round figure, and I think 65,000 underneath is a massive support level that you’ll be paying attention to. I like the idea of taking advantage of value if and when it occurs, although I’ll be the first to admit that we don’t really know when that value appears, mainly due to the fact that we just don’t have a lot in the way of markers underneath.

The $65,000 level is a psychologically important one, so of course I pay attention to that, but really at this point in time, I think you have to be very cautious. If we do break the $75,000 level, well, then it’s possible that we could see a situation where value hunters come in and take advantage of cheap contracts every time it dips below there again as it would become the next floor.

We’ll have to wait and see. I don’t know, but it wouldn’t surprise me at all to see Bitcoin go to 100,000 and dump down the road, but this is not something I’m calling for in the short term. Remain bullish, but be cautious and be cognizant of how much you’re paying. You don’t want to chase at this point.

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