BTC/USD
Bitcoin markets rallied initially during trading on Tuesday but ran into trouble at the downtrend line yet again. At this point the market looks as if it is going to form a bit of a shooting star, and that signifies just how Barry’s this area is. If we break down below the $4000 handle, then the market could drop down to the $3500 level. I would say this though, the 20 day EMA is starting to flatten out, so it’s likely that we are going to continue to drift sideways more than anything else, but if the market breaks above the top of the downtrend line, then we could drift towards the 50 day EMA.
Ultimately, I think that Bitcoin is a market that continues to selloff over the longer-term, so I look at these short-term rallies that show signs of exhaustion as an opportunity to sell again. A break down below the daily candle stick is a very negative turn of events, and it should send this down to the $3800 level initially, but a break down below there then it opens the door to the previously mentioned $3500 level. A breakdown below that level has the market testing the $3000 level again which isn’t much of a stretch, considering that it is a large, round, psychologically significant figure, which of course will attract a lot of attention in and of itself. I think if we were to break down below there, it would only bring in fresh selling, but I don’t think it’s going to happen in the short term. I continue to fade rallies overall but I also recognize that the selling pressure is much more stringent than the buying pressure this point.
