- The BTC/USD currency pair has fallen a bit during the trading session on Friday, losing almost 3% as we continue to see a lot of negativity out there.
- The market is likely to see a lot of selling pressure on any type of rally, and the $18,000 level ends up being significant support as we have seen a lot of support.
- If we break down below there, then it’s likely that the market opens up the floodgates to much lower levels.
When Is the Right Time to Start Buying the Bitcoin?
In fact, if we drop down below the $18,000 level, it’s likely that we could go down to the $15,000 level. That is a large, round, psychologically significant figure, and a lot of people will pay close attention to. Nonetheless, I think any rally that shows signs of exhaustion will be a nice selling opportunity as Bitcoin is too far out on the respect for him to think that people are going to be thrown a lot of money into it. The 50-Day EMA sits just above the $19,000 level and is continuing to drop. I think that offers a bit of a resistant barrier, so any rally at this point should be a selling opportunity at the first signs of exhaustion.
Bitcoin is going to continue to be shunned, and I do think that as long as the Federal Reserve remains extraordinarily tight with its monetary policy, that’s no real argument to the idea that Bitcoin should rally. Bitcoin is more likely than not going to break through that support sooner rather than later, and it’s likely that we will have an opportunity to start picking up Bitcoin “on the cheap.”
I do not think that we have hit the Bitcoin accumulation zone quite yet, as we are seeing other markets around the world fall apart. Granted, cryptocurrency has taken the brunt of the early selling in this bear market over the last several months, but we have further to go. If bigger institutional players are losing a ton of money in the stock market, they certainly are not going to be putting money over here. Even in a quiet situation like Friday was, you still saw a loss of almost 3%. That’s a huge loss for professional trader, so at this point in time is difficult to think that Bitcoin is going to attract a lot of attention. However, the 12,000 level would be a great place to start accumulating.
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