Bitcoin is climbing back after the recent selloff, though that may be short lived.

Looking at the charts, we can see that bitcoin recently had bit of a dip after getting almost all the way to $5,500.

Since that time, bitcoin has pulled back to right around $5k.

As I type, prices are showing some strength, getting up near $5,100...

(Source: https://www.coindesk.com/bitcoin-defends-psychological-support-line-after-dip-to-4900)

What does that mean?

In the very short term I think prices may continue to rally, possibly getting up near $5,300 again.

That area marks the downtrend line where prices broke down from.

Once we get near that area I would expect prices to get rejected and then head back to $5k, except this time I think they pull through to the downside.

From there, there is good support around the $4,700-$4,500 area and then major support around the $4,200-$4,300 area.

(Source: https://www.coindesk.com/bitcoin-defends-psychological-support-line-after-dip-to-4900)

My thoughts:

If you can be bitcoin sub $4,800 I think it is a great buy going forward, because I think this dip will be short lived.

Once we bottom out on this dip, I look for prices to start to trend back up and challenge $6k.

In fact, I think we are just starting a 2 year bull cycle on bitcoin, which means don't get too cute trying to time bottoms and pullbacks, especially if prices are going to make new highs.

Stay informed my friends.

-Doc