- Bitcoin initially tried to rally during the trading session on Thursday but has given back all of those gains near the 50 day EMA and just plummeted.
- At this point, it'll be interesting to see how we behave, but it certainly looks like we still have a lot of overhead pressure.
- That doesn't necessarily mean that the market is going to perhaps fall out of bed here, but I do think that we are going to continue to struggle to break out.
If you have been paying attention to my analysis over the last couple of days, I said the key to continuing a move higher was to recapture the $67,000 level, and we have certainly failed.
Could we go to $60,000?
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Because of this, it would not surprise me at all to see the market drop down to the $60,000 level. I think that the $60,000 level is an area that has been significant support previously, and of course is a large round psychologically significant figure. As long as we can stay above that area, then I think the trend is very much intact. At this point in time, I still think that Bitcoin is positive, but it's worth noting that we are now almost through the fourth month of consolidation after that really big six week rally that gained 92%. So, the question now is whether or not we are going to see follow through or if this is a dead market. It is going to be interesting to see how this plays out and I do think that the Federal Reserve is a major factor here.
Although the Swiss National Bank did cut rates again during the morning hours, the reality is that the Fed stands pat and that seems to be what the Bitcoin market is the most sensitive to. I do think we're still bullish, but I think we may have to drop a bit to find more value. In other words, you will probably have to be very cautious, and therefore I think you also have to be somewhat patient in this marketplace.
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