The Bitcoin market fell during the trading session on Tuesday day to reach down towards the 50-day EMA, the most common indicator that a lot of trend traders use in the Bitcoin market. You can see that the 50-day EMA has been an area that buyers have come in to pick up the market multiple times. Furthermore, you can see that the $50,000 level underneath continues to be crucial, as the large, round, psychological figure aspect of this level has caused quite a bit of buying pressure in the past.
If we can stay above the 50-day EMA, then I believe that the market is probably going to go looking towards the $60,000 level, and then possibly the $65,000 level, which was the most recent high. In general, this is a market that I think continues to see buyers on dips, due to the fact that we have been in such a strong move to the upside. Recently, we have seen more of a sideways market, but that is a good sign when you have seen the market shoot straight up in the air like it has. Because of this, we may have a bit of choppy trading ahead, but ultimately the buyers will continue to try to take out the highs.
If we were to break down below the lows of last week, that could open up a move down to the $45,000 level, which would be followed very quickly by the $40,000 level. That is an area that will capture a lot of attention due to the fact that it is a whole number, but it is also where the market has seen action in the past. Beyond all of that, we also have the 200-day EMA that would come into play also. The 200-day EMA is without a doubt one of the most important indicators that we can look at.
If we were to break down below the 200-day EMA, then it is very likely that we could go much lower, and at that point I would consider the trend broken. Until that happens, I believe that this is essentially a “one-way market”, although we can certainly hear quite a bit of noise. This is a market that can only be bought.
