Bitcoin had a very quiet session during the trading session on Thursday as the 36,800 level seems to be offering a little bit of stabilization. That being said, the market has fallen rather precipitously over the last several months, so any type of base building exercise is going to take a lot of patience. At this point, it more or less comes down to the idea of whether or not you believe that Bitcoin is done selling off, or if we are about to enter a “crypto winter.” The $35,000 level should be supportive, but quite frankly I believe that the $30,000 level is the real key to keeping this market alive at the moment.
If we were to break down below the $30,000 level, it is likely that we could see quite a significant amount of selling, perhaps making a beeline to the $20,000 level. We could see the dreaded “crypto winter” when markets are very quiet and simply offer a consolidation opportunity more than anything else. You can accumulate Bitcoin inquiring significant manners if you believe in It going for the longer term when that happens, but it remains to be seen whether or not that is actually going to be the case. Ultimately, I think that this market is still struggling with that question.
If Bitcoin was to break above the $41,000 level, then I think we could see a complete turnaround in this market and go much higher. Whether or not that can happen is a completely open question at this point, so therefore you need to be very cautious about the amount of Bitcoin you are buying at any given moment, because we have seen such a massive selling move that we cannot necessarily be completely confident when it is over. You need to be able to ride out the potential volatility, which of course could cause headaches if you are over levered or “all in” right away.
Nonetheless, this is a market that does offer a bit of value, as the selloff has been so brutal. However, keep in mind that it is a very volatile market under the best of times, so with that being the case you need to be very cautious in this particularly shaken environment. As there is fear out there, it will be difficult to see a lot of positivity in the crypto markets, at least not until everything else stabilizes.
