Bitcoin had a very quiet trading session on Thursday as we continue to hang around the $30,000 level. With the jobs number coming out on Friday, it’s possible that we may see the US dollar all over the place, so will probably bring some volatility into this market as well. Nonetheless, I do not expect Bitcoin to suddenly take off, because quite frankly there are far too many things working against crypto at the moment.
The $28,000 level underneath continues to be an area of interest, and an area that we need to pay close attention to. If we were to see Bitcoin suddenly take off, that would be what I would consider to be the “floor in the market” currently. However, if we break down below that level then it spells more trouble ahead for crypto, as Bitcoin is the bellwether for the entire sector. If Bitcoin gives it up and starts to fall at that area, I would anticipate a potential move down to the $25,000 level, which would attract quite a bit of attention. If we were to break down below there, then Bitcoin will almost certainly fall down to the $20,000 level and could send the rest of crypto down the toilet with it.
On the upside, breaking above the $32,500 level is a potential signal that we could get a bit of a recovery, but that recovery is going to be short-lived at best. After all, it’s very likely that we will continue to see quite a bit of downward pressure due to the fact that monetary policy is tightening around the world, and of course, we have major issues in the crypto markets to begin with. With this much fraud that has recently been discovered, it has a bit of a “knock-on effect” on other parts of the crypto sphere, including Bitcoin. If the US dollar starts the strength again, that could also work against the value of Bitcoin, so you need to keep that in mind as well. Ultimately, this is a market that I think will be noisy at best, and would more likely than not be difficult to hang onto unless you are looking at it from a longer-term perspective. I anticipate more bearish pressure than anything else in the near term, but if you are an investor you may get excellent pricing soon.
