The Bitcoin market initially pulled back towards the 50-day EMA underneath, as we have seen a proclivity of this market to respect it. The market has turned around to break towards the $57,500 level as it continues to show quite a bit of resiliency. Just above, the $60,000 level is a large, round, psychologically significant figure that a lot of people pay attention to. If we can break above there, then the market is likely to go looking towards the $65,000 level.
When you look at this chart, you can see that the market has been rising for some time and we are most certainly in a significant uptrend. I also believe that the $50,000 level underneath is going to be supportive, so it is worth paying attention to as well. We have already seen it cause a lot of buying pressure, and we have seen more than once that there is a lot of price action in this general vicinity. If we break down below the $45,000 level, then we may have a little bit of a pullback, as the 200-day EMA would come into the picture.
The market is likely to see a lot of volatility, so it is worth paying close attention to the market and your position size. Nonetheless, it is obvious that we have a very bullish market, but there are a few red flags that are starting to appear. For example, the most recent low was lower than the one before it, so we will have to wait and see whether or not Bitcoin can make a “higher high” in order to continue the uptrend. This is not to say that I think there is a massive selloff coming, but it is worth noting that the behavior of the market has changed recently.
The question now is not so much as to whether or not the market is going to break down, but are we even ready to enter consolidation? That would make a certain amount of sense, because the market has gotten so far ahead of itself this year that one has to wonder who is going to be out there wanting to buy at these high levels. Yes, institutions can do it, but as far as the retail crowd, most people look at a price of $55,000 and simply pass it by. Because of this, I think that if we get a significant correction, we may get fresh retail buying, but right now it looks like we are simply churning away.
