BTC/USD Forecast: Bitcoin Reaches 50-Day EMA

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I will more likely than not be looking at a breakdown to start buying.

The Bitcoin market rallied ever so slightly Wednesday as we continue to see a lot of noisy behavior. That being said, the market is likely to be very noisy, to say the least, therefore I think volatility is something that you will need to get used to. The 50-day EMA sits above and is drifting lower. The market is likely to see dynamic resistance due to that, and it is possible that we could see sellers come back into the market at the first signs of exhaustion. Furthermore, we need to pay close attention to the recent high and the $24,000 level.

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If we were to break above that high, then it’s possible that we could go looking to the $28,000 level. The $28,000 level is the beginning of the next major resistance barrier that extends to the $32,000 level. If we break above that level, then it’s possible that we could go much higher. Having said that, it’s very likely that we are going to see exhaustion before it’s all said and done. Signs of exhaustion will be looked at as a potential opportunity because quite frankly Bitcoin still has a long way to go before it changes its overall attitude.

With the central bank in the United States being so tight, as well as many others, it makes it very likely that crypto markets around the world will continue to suffer. While Bitcoin is the leader, the reality is that it will just be “less bad” than many others. If we break down below the $18,000 level, this is a market that could fall apart rather quickly, perhaps reaching down to the $15,000 level, perhaps even down to the $12,000 level.

The $12,000 level underneath has been an important level multiple times over the last several years, so I think that you could have a lot of people looking to get involved and build up a larger position. I do think that’s where the monies are to be made next time, building up a longer-term position for the next pump higher. Even though it’s been relatively bullish over the last 24 hours, it’s difficult to think that we have changed attitude completely, so I will more likely than not be looking at a breakdown to start buying.

BTC/USD

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