BTC/USD
Bitcoin did very little during the trading session on Wednesday, as we continue to bounce around. The market has a lot of resistance above at the $4000 level, and as you can see the candle stick from the trading session on Christmas, there was a lot of negativity. Ultimately, I think that the downtrend is still very much intact, and that we will probably look at this as a selling opportunity.
Bitcoin has been an absolute mess for well over year now, and now it looks as if rallies are still to be sold. I believe that the $3000 level will probably be the next target if we break down below the lows of the last couple of days. $3000 obviously has a certain amount of psychological importance to it, but it also has a little bit of structural importance due to the bullish and golfing candlestick that formed about a week ago. It is because of this that I think it may take a couple of attempts to finally break through it.
The alternate scenario of course is that we break the highs of the last couple of days and that would probably send this market looking towards the 50 day EMA, closer to the $4500 level. I think above there, the market could go looking towards the $5000, which obviously is both psychologically and structurally important. Nonetheless, I believe that rallies at this point should be thought of as selling opportunities, as it is the longer-term downtrend is very much an effect, and I believe that eventually we could even break down below the $3000 handle. Once that happens, the market should then go to the $2500 level. At this point, bitcoin just can’t seem to get out of its own way.
