BTC/USD
Bitcoin markets drifted a bit lower during the trading session again on Thursday as we continue to rollover in general. I think at this point it’s very likely that we continue to see sellers come in every time we rally, and I do not have any interest in buying this market. With that being the case, I look at several of the technical signals on this chart telling me which direction to trade, and they all continue to point to the downside, which makes a lot of sense considering how deflated most Bitcoin traders have become.
Looking at the chart, I can see that the 20 day EMA, pictured in green on the chart, is hugging the $3500 level. That is an area that will of course attract a lot of attention due to the fact that it is a big round number, but also the moving average has been very liable as of late. Beyond that, if we can break above that level there still the downtrend line that extends a bit above there, and then of course we have the 50 day EMA just above as well.
I do believe that bitcoin is going to go looking towards the lower levels that we had touched, closer to the $3000 level. I continue to suggest fading rallies and have no interest whatsoever in buying this market as we keep hearing the same story: “when X happens, things will turn around.” We’ve been hearing that for about $15,000 now. Overall, this is likely going to continue to grind to the $3000 level, and then a move below there probably comes next. At this point, if we were to break above the $4000 level it could cause a bit of a relief rally but in the end this market continues to fail.
