Bitcoin has initially pulled back a bit during the trading session on Thursday but continues to find buyers near the $20,000 level. The Bitcoin market continues to bounce around this area, and therefore I think it’s more or less going to be a bit of a magnet for price. We have been going back and forth, and I think ultimately this is a situation where we are either trying to form some type of base, or we are going to eventually break down.
Bitcoin is more likely than not going to be the most important crypto going forward, but whether or not it is the most widely adopted could be a different question altogether. After all, you should think of crypto similar to the technology stocks in the past, because some of the biggest ones are now gone, while some of the “winners” are now the biggest companies in the world. That might happen with Bitcoin, it may become another story like MySpace. (Yes, I realize it seems very unlikely, but you could’ve said the same thing about MySpace at one point.)
Looking at this chart, I think if we break down below the $18,000 level, we could go down to the $12,000 level. The $12,000 level is an area where I could find buyers jumping around and getting involved in the market, and I will more likely than not continue to build a bit of a position once we get down there. I think crypto winter could last quite some time, because we have so much to worry about globally, and if the economy is going to continue to look very weak, it’s difficult to imagine that a lot of people would be willing to throw massive amounts of money into a highly speculative market such as Bitcoin.
If we do break above the $22,500 level, the 50 Day EMA is going to continue to be a bit of an issue, and if we can break above there, then it’s likely that we could see the $27,500 level, and therefore I think if we see signs of exhaustion, it’s time to start shorting again in that area. The market continues to see plenty of volatility in downward pressure, so I think you have plenty of time to accumulate if that’s what you are choosing to do. Ready to trade Bitcoin USD? Here are the best MT4 crypto brokers to choose from.
