Chart of the day: Bitcoin

Bitcoin - Are you a "Bull or a Bear?"

I could make an argument for Bitcoin rallying, but also for it to sell off. And to be frank, it has to do with more about what happens in the future in the markets. Do risk assets rally? Bitcoin would rally. Do risk assets sell off from profit taking and growth reasons? I think Bitcoin would sell off. Do stocks move down from a banking or debt crisis? I think Bitcoin would rally. There are even more situations to consider, but the fact is that we don't have enough information.

Technically, I could argue either at this time. Bitcoin is in a long term "cup and handle" pattern which could target well above the 100,000 level in the coming months. However, a a break of the 50% retracement of the last leg higher and channel support at 56435 (would be the handle support too) would suggest a much bigger pullback is in store.

So unless you have an edge at the moment, the 56435-72000 rage (handle) looks to be what traders should be watching near term.

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