BTC/USD
Bitcoin rallied a bit during the trading session on Friday, but as you can see we have rolled over a bit, as the market has broken down significantly through the important $6000 handle, an area that has offered support for ages. The market looks likely to continue to go lower, as we have broken down through support that the market has been very stringent around. I think that if we break down below the hammer from the Thursday candle, the market will probably continue to go down to the $5000 level. The $5000 level is of course a large, round, psychologically significant level, and of course an area that has been important for some time. I think at this point, rallies continued to be sold off, and I believe that the $6000 level will cause issues.
Beyond that, the 50 day EMA is important, and should be an area that the sellers could come back into the market and get aggressive. Bitcoin continues to struggle as the crypto currency markets all have been hammered. Beyond that, the US dollar is strong and is showing no real proclivity to soften at this point. If we do break down below the $5000 level, then the market goes much lower, and the sellers will overwhelm the buyers again. Ultimately, I don’t have any interest in buying Bitcoin as you know, at least not until we get a daily close well above the 50 EMA, something that we haven’t been able to do for a while.
At the end of the day, the biggest problem Bitcoin has is that the world has an adopted the currency. With central banks around the world looking to perhaps go into the crypto world, would make sense that we continue to struggle here.
