Bitcoin has had a rather choppy and volatile session during the day on Thursday, as we initially reach down towards the 50 day EMA only to find buyers in that area. The fact that we have turned around to rally a bit during the course of the trading session and break above the $40,000 level suggests that the market is trying to build up the necessary momentum to break out of this range that we have been in for some time. In fact, we turned around strongly enough to suggest that perhaps the market is going to make a serious attempt to getting out of this previous consolidated of action.
If we can take out the highs from the week, then it is likely that the market goes looking towards the $50,000 level, as it is the next major figure and of course the consolidation area has been $10,000 tall. With that being the case, the market would of course see a lot of inflow at this point. On the other hand, if we were to turn around a break down below the bottom of the lows of the last 48 hours, then the market could go looking towards the 200 day EMA where a lot of attention would be paid to. The 200 day EMA is sideways which suggests that longer-term market is trying to figure out which direction to go.
This market will continue to try to figure out where is going next, but it should be noted that the that we have seen a nice recovery over the last couple of days suggesting that perhaps the buyers are going to win this argument overall. That being said, if the market were to break down below the 200 day EMA, it is likely that we would go looking towards the $30,000 level. That is an area that has been supported in the past, and if we were to turn around and break down below that 200 day EMA, it probably means that we will eventually break down below the $30,000 level to reach towards the $20,000 level. Either way, it looks like we are about to make a rather significant move and right now that candlestick from four days ago would be worth paying close attention to as it could signal where we go next.
