- The BTC/USD has taken off in the last week or so, seemingly flying in the face of all of the Ponzi schemes and outright fraud that we see in the crypto world.
- Perhaps this is partly due to people getting out of other crypto and heading into Bitcoin, perhaps it is also something to do with capital flying out of China at the same time.
- Either way, this is a rather impressive move of the last week or so, and now we find ourselves at the crucial 200-Day EMA.
Not only are we at the 200-Day EMA, but we are at a place where you would expect to see some trouble. Keep in mind that Monday was Martin Luther King Jr. Day in the United States, so a lot of institutions weren’t even involved. Whether or not there’s enough momentum to continue going higher is a completely open question, but it certainly looks as if we are in a place where you would expect to see the market selloff. We are overstretched, facing the 200-Day, and a huge selling area where we had fallen apart previously.
Watch the Chart Closely
We do not know what’s about to happen, so there’s always a certain amount of caution that needs to be taken, especially in Bitcoin as it can be so ridiculously volatile. If we can break above the $22,000 level, then that would obviously be a very bullish sign and we could go another $3000 rather quickly. On the other hand, if we have run out of momentum, and it looks like we have over the last couple of trading sessions, then we could pull back to the $18,000 level rather quickly.
After all, it’s difficult to ascertain as to who is throwing money at this market, but I would say that it has behaved quite well considering that FTX, Gemini, and several other Ponzi schemes and frauds have been uncovered in the last couple of weeks. Perhaps it is people out there willing to bet that the bottom is in because quite frankly we stop selling off on what should be horrible news. Whether or not that’s going to be the case remains to be seen, but I can see the logic behind that. I’ll be watching this chart closely, but I think if it gives up the psychologically important $20,000 level, we will see a resumption of the downtrend.
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