The bitcoin markets initially tried to rally during the course of the trading session on Thursday but then gave back the gains to show signs of exhaustion. The market has been very bullish for some time, but we have gone sideways over the last couple of months, so I think we are simply trying to work off some of the excess froth that we had seen recently. The 50 day EMA is flattening out, so I think will continue to see a little bit of indecision, or perhaps simple distribution.
Looking at this chart, the $50,000 level underneath should continue to be supportive, as it was previously resisted, and has even be retested a couple of times. To the upside, the $60,000 level has been massive resistance oh pulling back the way we have early in the day makes quite a bit of sense. If we break above the $60,000 level, it is likely that we could go looking towards the $65,000 level again, which was the recent all-time high. Obviously, breaking above that would be a very bullish sign and could continue the overall long-term move.
When you look at the overall attitude of the market, you can see that we have been grinding higher bit recently have shown a little bit hesitancy, which of course makes sense considering just how straight up in the air we went. All things being equal, I think that you cannot short this market, because it is obviously bullish. However, if we were to break down below the lows of the last couple weeks, we probably go looking towards the $40,000 level. That is where the 200 day EMA comes into the picture, which of course is a longer-term trend indicator.
I think the only thing you can probably count on in this market right now is choppy behavior, as a lot of money seems to be flowing into some of the smaller coins, and of course Ethereum. Nonetheless, these things tend to work in cycles so I think that a short-term pullback is probably the best thing that could happen for this market, simply offering a bit of value that a lot of institutional and longer-term traders will be looking for. Ultimately, this is a market that should pick up where it left off given enough time. A little bit of patience probably goes a long way.
