This is a market that will more than likely continue to offer buying opportunities occasionally.

Bitcoin has pulled back a bit during the trading session on Thursday as we have gotten a bit overextended. At this point, it looks as if we are going to test the $45,000 level, an area that previously had been major resistance. Furthermore, it is an area that also features the 200 Day EMA, so it does suggest that we could see “market memory” come into play there.

The 50 Day EMA is starting to curl higher and is threatening to break above the 200 Day EMA. This would form the so-called “golden cross”, that a lot of people look to for the longer-term buy-and-hold type of signals. Bitcoin has most certainly made quite a move over the last couple of weeks, and the pullback does make a certain amount of sense. After all, markets do not go straight up in the air forever.

We have the jobs number coming out on Friday, and that will have a major influence on what happens with the US dollar. By extension, it also will have an influence on this market as Bitcoin is measured against the US dollar. If the US dollar rises, it may put a little bit of negative pressure on this market, but only to a point.

Ultimately, this is a market that I think will continue to see a lot of choppy behavior, but it does look like we have just kicked off a massive “W pattern”, which suggests that we have further to go to the upside. In fact, the “measured move” suggests that we are going to go to the $55,000 level. This does not mean that it will be easy, but that is what the technical analysis does in fact suggest.

However, if we were to turn around and break down below the $40,000 level, then it could put significant bearish pressure on Bitcoin to drop even further. In that scenario, I anticipate that we go looking to reach the $35,000 level, and a breakdown below there could open up even more fresh selling. Over the next couple of days, I expect to get some type of clarity as to what is happening next, but as things stand right now I still believe this is a market that will more than likely continue to offer buying opportunities occasionally.

AVAX/USD has produced volatility the past day, but the cryptocurrency has extended its run higher while also providing speculative fireworks.

The past day of trading in Avalanche has produced quick results, which are likely testing the fortitude of speculators who are pursuing AVAX/USD. In early trading today, Avalanche reversed lower after achieving a high yesterday of nearly 96.20000000, sinking to slightly below the 89.00000000 ratio a few hours ago. However, AVAX/USD quickly reversed higher after hitting this low and its bounce has taken the cryptocurrency above the 94.20000000 mark as of this writing.

Bullish technical traders may be fueled by an optimistic outlook as AVAX/USD is within sight of mid-February highs. On the 17^th of February AVAX/USD was trading above 98.00000000. Yes, on the 24^th of February Avalanche was trading a hair under the 64.50000000 mark, and then produced choppy trading higher until the 14^th of March when AVAX slumped again within sight of the 65.00000000 level. This is written as a warning to speculators who believe Avalanche will not slide lower again.

However, like the broad cryptocurrency market AVAX/USD has been able to produce a solid trajectory higher for almost two weeks.  Volatility is not extinct; there will be fast moves within AVAX/USD that is promised. Speculators need to understand Avalanche can move in a hurry and entry price orders are strongly advised.

If AVAX/USD is able to sustain its current price range and shows ability to keep trading above the 94.00000000 today, this may be a solid signal that speculators may be anticipating higher moves. The recent move upwards in AVAX/USD still has the cryptocurrency within the lower realms of its six month charts, but Avalanche is certainly showing signs of challenging highs within its three month pattern.

 If AVAX/USD picks up additional momentum and the 95.0000000 and 96.00000000 marks are suddenly challenged again, some optimistic bulls will likely target higher ratios like the 98.00000000 juncture. The broad cryptocurrency market and the major digital assets are showing signs of life, and are flirting with important mid-term highs. If sustained trading starts to make resistance levels vulnerable another leg up may come sooner rather than later, including in AVAX/USD.

Traders need to use risk management effectively.  After sustaining a serious bearish trend since November, AVAX/USD is beginning to tangle with important resistance and show enough strength to create anticipation of higher values. However, until AVAX/USD breaks above the 98.00000000 level, traders may remain suspicious about potential reversals lower also.

Avalanche Short-Term Outlook

Current Resistance: 95.60000000

Current Support: 93.55000000

High Target: 98.90000000

Low Target: 88.85000000