Bitcoin markets initially tried to rally during the trading session on Wednesday but yet again found the market lackluster at best. We are simply going sideways as we try to work off some of the excess that we had seen in the market previously, so looking at the chart, it is obvious that we are essentially stuck in a range. This makes sense, because the market had gotten far too ahead of itself, and now we are simply trying to kill time.
Underneath, I see the $50,000 level as support, right along with the 50-day EMA. The 50-day EMA has been grinding slightly higher for some time, and at this point I think that does show the proclivity to go higher given enough time, but obviously we are in no hurry to get anywhere. The $60,000 level above is obvious resistance, so I think it will take a significant amount of pressure to finally break this market out of this region.
If we break above the $60,000 level, then it is likely that we go looking towards the $65,000 level. The $65,000 level is an area where we have seen a lot of selling pressure previously, so if we were to break above there then it is likely that we would see the overall uptrend continue to press higher. I think that eventually will happen, but in the meantime, we are trying to build up the necessary momentum to make it happen.
Even if we were to break down below the $50,000 region, I do believe that there are plenty of buyers underneath here extending all the way down to at least the $40,000 level to make this a likely significant opportunity. After all, this is a market that has for quite some time found plenty of buyers every time it dips and, with the significant amount of institutional money flowing into the marketplace, that adds more credence to the idea of a longer-term “buy on the dip” type of scenario. Because of this, the market is likely going to continue to be noisy, yet favor the overall buying of Bitcoin. Unfortunately, recently, the market has seen a little bit of lackluster performance due to the fact that the other coins are starting to attract some of the “hot money.”
