The Bitcoin market tried to rally at the start of the Friday session, but gave up many of the gains and showed signs of exhaustion. Ultimately, I think this market is going to be very noisy as we have seen a lot of questions regarding the cryptocurrency markets in general. Frankly, we still have a lot of concerns regarding global markets, and the Bitcoin market won’t be far from that.
strong:first-child {
color: #c0c0c0;
}
.advbox>strong:first-child {
background: none repeat scroll 0 0 white;
font-size: 11px;
font-weight: lighter;
right: 11px;
line-height: 18px;
margin: 0 0 -9px !important;
padding: 0 10px;
position: absolute;
top: -10px;
}
]]>
The $24,000 level has been significant a few times now, so it makes sense to see the markets pull back from here. However, this does not necessarily mean that we will collapse from here. Most likely, we will see a situation where we go back and forth until we can work things out. I don’t think Bitcoin has bottomed yet, but at least it makes an important argument for stability.
If we break above the $25,000 level, that might potentially lead to a move to the $28,000 level, but this is a resistance area as well, and it extends all the way to the $32,000 level, So all things being equal, I think it will be difficult to break above this level. If we do this, the whole trend will change, and it may push Bitcoin to higher levels.
By looking at this chart, it is clear that we have been in a bearish trend for quite some time, so it would be difficult to be bullish at this point. I think the selling on rallies will continue, as the US dollar remains strong, despite the fact that it has pulled back a bit. Ultimately, this market will continue to see a lot of selling pressure at the first opportunity, as there is a lot of negativity in the market, so I think it won’t take much to scare the traders out. However, there are some long-term traders who have used this last area to gain a bit of value, and they have a more long-term perspective than most traders. For this reason, I think we have a situation where short-term traders exit, while long-term traders may choose to enter.
