BTC/USD
The bitcoin markets again did very little during trading on Monday, as we are positive by three dollars as I record this. The market has formed a pseudo shooting star, but at this point I think that the market is using the 50 day EMA as potential resistance, but obviously we have a lot of support underneath at the $6000 level still. This is an area that continues to be difficult to break down, and even though we are starting to go sideways more than anything else, I think that the biggest problem this market faces is a simple lack of interest.
There was the downtrend line that we had been following for some time, but as we broke through it we didn’t take off to the upside either. This tells me that the market isn’t ready to go anywhere and we are simply looking at a scenario that is probably a market that is waiting for a reason to move. If you are short-term trader, and have the ability to trade large positions, you can take advantage of this type of market by going back and forth in a tiny range.
However, if we were to break down below the $6000 level, and possibly even the $5800 level as it is the bottom of the overall range. If we break down below there, I think that the market could break down rather significantly. Otherwise, if we can get a daily close above the 50 day EMA, then it’s possible that we could go looking towards the $7000 level above. Unless you have the ability to go back and forth with a scalping type of situation, you probably will pass on this market. We will eventually get some type of move, but it doesn’t look like it’s happening today.
