BTC/USD
Bitcoin markets fell again during the trading session on Wednesday, as we continue to see sellers jump in and punish the crypto currency markets. At this point, it looks as if the $4000 level is going to offer significant resistance, and most certainly the $4500 level will. Ultimately, I think that the market will make a fresh, new low, sending this market much lower, perhaps to the $3000 level rather soon. I believe that we will break down below the $3000 level as well, going even lower. Quite frankly, bitcoin simply cannot get out of its own way. In markets like this, it makes sense to sell short-term rallies that show signs of exhaustion. Quite frankly, it’s almost impossible to imagine a scenario in which I would be buying Bitcoin currently.
At this point, I don’t even have a target to the downside, because every time I come up with one, the market goes below it. Ultimately, this is a market that offers plenty of opportunity if you are patient enough to wait for the bounce. The US dollar has strengthened for some time, which of course is also working against Bitcoin.
The biggest problem with Bitcoin is that there’s no real use for it. It simply is not being adopted, so therefore it’s difficult to imagine a scenario in which it starts to take off to the upside. There are possibilities down the road, but right now it looks as if the market needs to go much lower to offer enough value to take a bet on the idea of Bitcoin taking off. While I do believe in the idea of blockchain technology, the reality is that crypto currency itself will probably be taken over by central banks.
