Bitcoin markets have gone back and forth during the trading session yet again on Monday, as we continue to see a lot of noisy and choppy behavior. With this, I think we are trying to figure out whether or not we are going to break out or break down. The 50 day EMA above has been offering a significant amount of resistance, but it is also worth noting that the 200 day EMA sits underneath and offers quite a bit of support. With that being the case, it looks like we are trying to consolidate in order to figure out where we are going next.
The 200 day EMA also sits right at the $40,000 level, which of course is a large, round, psychologically significant figure, and it will attract a certain amount of attention. If we break down below that level, then it is likely that we are looking towards the $35,000 level, possibly even down to the $30,000 level after that. $30,000 level is essentially where I believe the “floor in the market” is as far as an uptrend is concerned, and a break below that level would obviously open up a flood gate of negativity in this market, and it could send crypto crashing overall. It would not only be negative for the Bitcoin market, but it would also be negative for all the other coins out there.
To the upside, if we do break above the 50 day EMA, then it opens up a move towards the $48,000 level. The $48,000 level has been an area where we have sold off quite drastically to show negativity in the latest move, but if we can break above there then it is possible, we could go looking towards the $52,000 level where this all began. I do believe that the market will continue to be very noisy, but it seems as if we are trying to form some type of base in order to go higher. The 200 day EMA underneath should offer quite a bit of support, which could be reason enough to get long for longer-term traders. Expect a lot of noisy behavior in the short term, but I do believe that eventually the value hunters will get involved to start buying again. Expect erratic behavior, but once we break out of this squeeze, we should get quite a bit of momentum.
