Bitcoin Continues to Do Very Little

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Bitcoin is probably the first place where we will see crypto markets try to recover, so keep an eye on this chart going forward. 

Bitcoin rallied to kick off Wednesday but continues to hear a lot of noise near the $30,000 level. It looks as if Bitcoin has no real momentum, so I think it’s probably going to continue to do very little. In a best-case scenario, this is a market that is trying to stabilize itself, perhaps making it possible for some type of significant rally. However, that seems to be very unlikely, and even if we did rally quite drastically here, it’s going to be a short-term rally more than anything else.

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If we do break to the upside, the $35,000 level above is a potential resistance barrier, as it was previous support. Furthermore, the 50-day EMA is right there as well, and that obviously would cause a significant amount of technical resistance as well. Breaking above that level then opens up the possibility of a move to the $40,000 level, but that seems to be very unlikely at this point. The Bitcoin market is suffering right along with the rest of the crypto markets, as risk appetite has all but evaporated at this point.

Keep in mind that Bitcoin is also measured in US dollars, which is by far the strongest currency around. Because of this, I think it is probably only a matter of time before we see some type of selloff in this market. The $28,000 level being broken to the downside could kick that off. At that point, the market would go looking to the $25,000 level, where we had bounced from previously. Ultimately, I have no interest in buying Bitcoin anytime soon, because the crypto markets are getting crushed. That being said, Bitcoin is probably the first place where we will see crypto markets try to recover, so keep an eye on this chart going forward. It doesn’t really matter whether or not you are trading Bitcoin, because if you are trading any crypto market you need to see this one rally before you start buying other ones. The same can be said if Bitcoin starts the selloff, as you would want to short smaller markets. At the very least, you would not want to buy those smaller coins. Ultimately, I think you have plenty of time to make a decision as the market does not seem like it has anywhere to be in the short term.

BTC/USD

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