Bitcoin Gives Up Early Gains For the Day

The best way to handle Bitcoin is more likely than not going to be buying little bits and pieces if you are more bullish on the longer term.

  • The BTC/USD currency pair has rallied significantly during the trading session on Thursday to reach the $25,000 level. However, the market has pulled back from there to show signs of exhaustion.
  • The daily candlestick is forming a shooting star, which of course is a very ugly look.
  • If we break down below the bottom of the candlestick, then it’s likely that the market could drop down to the $23,000 level.

If we do break down below that $23,000 level, then it’s likely that we could go down to the 50 Day EMA underneath. The 50-Day EMA sits right around the $22,000 level. Anything below there opens up the possibility of a huge drop lower, but I don’t think it’s very likely in the short term. Longer-term, it’s very possible, especially if we get some type of spike in interest rates were sell-off when it comes to risk appetites in general. Ultimately, I think this is a market that will more likely than not continue to be very noisy, and I do think that the Bitcoin market is still in the midst of trying to figure out whether or not it can turn around for the long term.

Even if we do break above the $25,000 level, it’s possible that we will just see more selling pressure near the $28 level. The $28,000 level extends all the way to the $32,000 level, meaning that it should be a major resistance barrier. The market breaking through all of that would end up being a major trend change, and I think everybody will jump in at that point. More likely than not, it’s likely that we go much lower, perhaps trying to get down to the $20,000 level.

If you are a longer-term investor, then you need to look at these dips as a potential buying opportunity, but you also have to be able to put up with quite a bit of volatility. In fact, the best way to handle Bitcoin at this point is more likely than not going to be buying little bits and pieces if you are more bullish on the longer term. That being said, the market continues to be very noisy, and therefore you need to be cautious about getting too deep into a position. In fact, it’s very likely that we can see a longer-term sideways market more than anything else, building up the accumulation phase before the next bullish market.

BTCUSD chart

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