BTC/USD
The bitcoin markets broke down a bit during the trading session again on Friday as we continue to see a lot of resistance at the $4500 level. Ultimately, the market looks as if it is ready to break through the $4000 yet again, and it seems now that we are going to go much lower. We have pulled back to find more sellers at the previous support level, and therefore I think that we are looking at a move to at least the $3500 level, if not the $3000 level. A breakdown below that level probably comes in a few weeks as Bitcoin simply cannot get out of its own way.
Ultimately, this is a market that has no demand and therefore you are going to find it very difficult to make money buying it. However, it is an excellent market to start shorting on rallies that show signs of exhaustion as that trade has worked since the beginning of 2018. There is nothing else to be done with this market rather than to sell it if it gets a bit ahead of itself to the upside. However, I do recognize that if we can break above the 50 day EMA, then the market could go higher. I would wait for a daily close above that level, which is currently at the $5700 level. In other words, it’s a long way from where we are and it’s going to take significant changes in the attitude of the crypto currency market for that to happen. I suspect that we are a long way from stability and therefore it’s a “sell the rallies” situation. Ultimately, this is a market that looks horrible and it’s only getting worse.
