- Bitcoin went back and forth during the trading session on Monday, as we continue to see a lot of questions asked of crypto at the moment, especially as the Friday session was so horrific. At this point, the market is likely to continue to look at the 50 Day EMA with suspicion, and if we continue to struggle in that area, I think it makes a certain amount of sense that we hang out in this area.
Technical Analysis
The technical analysis for Bitcoin is still essentially the same as it was several weeks ago, but we did have that “false break down” above the $120,000 level. I think ultimately this is a market that will eventually try to go higher, and I think that the action that we saw on Sunday was the beginning of that. That being said, any short-term pullback that we see at the moment is likely to continue to be bought into, with the $108,000 level offering support as the 200 Day EMA is in that same area. That should end up being a significant support level for longer-term traders, but we will just have to wait and see how that plays out.
We do break down below the 200 Day EMA, then it is likely to continue to be a very negative turn of events, and sellers would probably start to gain clear control. On the other hand, if we can break above the $117,500 level, then it opens up another attempt to get above the $120,000 level, followed by the $125,000 level. Ultimately, I think we are more likely than not going to see buyers coming back into Bitcoin, but there has been a significant amount of damage done to the overall uptrend, but we still haven’t broken through significant support yet. Because of this, I think there still a strong chance that traders come in and pick up “cheap Bitcoin”, but this point in time we need to see a little bit more in the way of momentum, which probably would be a reaction to more “risk on behavior” around the world.
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