Bitcoin Hanging On By Thread

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Do not fall for the hype, follow the price. Price is truth. The price is going lower.

Bitcoin went back and forth on Wednesday to challenge the $30,000 level. This is a large, round, psychologically significant figure, and an area that a lot of people will be paying close attention to. Looking at this chart, the $30,000 level has been important multiple times, so it does make sense that we would see this area being challenged and paid close attention to.

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If we were to break down below the bottom of the candlestick during the trading session on Wednesday, that could open up a flood of selling. If we get down below the $30,000 level, is likely that we could fall apart and start entering the possibility of “crypto winter.” With some of the trouble that we have seen in the area of the stable coins of crypto, it is not going to be a surprise at all to me if we break down. Short-term bounces will more than likely offer nice selling opportunities, as this is a very bearish market, and that is not changing anytime soon. In fact, because we could not break over the highs of the trading session on Tuesday, it is likely that we will continue to see a lot of nastiness.

If you are a longer-term believer in Bitcoin, you are going to get the opportunity to buy it at much lower levels. It would not surprise me at all to see Bitcoin reach the $20,000 level, as the rest of crypto looks absolutely miserable. Ultimately, it is not until we break above the $40,000 level that you can take any rally seriously as far as a longer-term trade is concerned. We might get a short-term pop to the $35,000 level, but after the action of the last couple of days, that does not look to be very likely.

The risk profile of the markets right now is most certainly risk-averse, so there is no reason to think that crypto is suddenly going to attract some inflow. Yes, I know that Michael Saylor has an average price somewhere near the $30,000 level according to Twitter, but that is not a reason to buy or sell anything. Do not fall for the hype, follow the price. Price is truth. The price is going lower.

BTC/USD

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