The Bitcoin market rallied a bit to kick off the trading session on Monday, but also gave back all of this gains to show a slightly negative attitude. By forming a shooting star, it does suggest that perhaps we are going to pull back, but there is a ton of support underneath. The 50-day EMA is starting to turn higher and looks likely to continue to offer support as it has over the last couple of weeks. At this point, I think that we will see a lot of value hunters near that general vicinity.
To the upside, you can see clearly that the $60,000 level has offered some resistance, and I think at this point it is probably going to continue to be a little bit of a headache. If we were to break above the $60,000 level, then it is likely that we could go looking towards the $62,500 level. If we can clear that level, then we will be at a fresh, new, all-time high, which could have the market looking towards the $70,000 level.
To the downside, if we were to clear the 50-day EMA, then it is likely that we will have to test that psychologically and structurally support level at the $50,000 level. If we were to break down below there, then it is likely that we could go down towards the $40,000 level, which is where the 200-day EMA comes into the picture. I think that then becomes a trend-defining support level. Looking at the choppy volatility that we have seen over the last couple of months, this suggests that Bitcoin is going to continue to be a bit noisy and directionless, as we are starting to see more money flow into the other crypto markets such as Ethereum, Polkadot, Cardano, and many others. In other words, we are now in “alt coin season”, so that may be sucking in some of the liquidity that we typically have in this market. Nonetheless, this is certainly a market that we do not need to be shorting anytime soon, as it has been in such a strong uptrend. Furthermore, the institutional money that is flowing into this market certainly will help keep it alive as well. With this, there is no way to sell, but I would pick up value as it appears.
