The Bitcoin market drifted a little lower on Monday as we are looking at the $20,000 level as a potential support area yet again. If you look at the chart, you can see that the $30,000 level also offered quite a bit of support, and the price action has been almost identical. The 50-day EMA sits just below the $25,000 level and is starting to race toward this area as well. In other words, we will probably have a bit of a squeeze coming.
If we see this market break down below the $18,000 level, then it’s likely that we could go much lower. I do believe that eventually we will probably get looking to reach the $12,000 level, but timing the bottom is always a bit difficult. If you believe in Bitcoin over the longer term, then you may be willing to dip your toe in the water at the moment, but I would do so very slowly. Even if we do not break down from here, it’s likely that we will spend quite a bit of time going sideways. After all, Bitcoin has done that more than once, as it seems to be a bit of a cycle.
If we break above the $22,500 level, then it’s likely that we could go looking to the 50-day EMA which is sitting at the $25,000 level. If you break above there, then the market will go to the $30,000 level which is even more resistive. That would be a 50% increase, so it would obviously be a major turnabout.
I think Bitcoin will end up being a great investment, but you need to take your time because under the best of circumstances we would have sideways action for quite a while. Under the worst of circumstances, we have much further to go. After all, if we were to drop down to the $12,000 level, that’s another loss of like 40%. Ultimately, I think that Bitcoin will reach new highs, but that might be a few years down the road so you should plan accordingly. Bitcoin continues to lead the rest of the crypto markets, so regardless, you should keep an eye on this chart if you are planning on trading any crypto at all. After all, the Bitcoin market is by far the biggest in the world, so crypto tends to follow right along.
