We need to see some kind of momentum coming back into that market to put a lot of money into it.
The Bitcoin market swung back and forth during Tuesday’s trading session as the market continues to hold on to the 200-day EMA. The 200-day EMA is flattening, which could suggest the market is poised to deviate. We are currently just below the $ 40,000 level, and it should be noted that the $ 30,000 level below must be maintained for traders to benefit from the pullback and value in this general neighborhood, so it will be interesting. to see whether or not we can hold on.
If we were to fall below the $ 30,000 level, then there is a possibility that the market will go much lower, perhaps to the $ 20,000 level. Ultimately, this is a market that I think will continue to experience a lot of volatility, but if we can get past the $ 40,000 level, chances are we could look to the $ 50,000 level as well, because it’s the next big, round, psychologically significant number. This is an area where the 50 day EMA is currently sitting and maybe trying to cross below. The 50 day EMA will attract some attention from technical traders which may cause some noise.
The area we are currently trading in is what I would consider consolidation as we need to see some kind of momentum coming back into that market to put a lot of money into it. However, if you are a long-term trader, you are likely to see this as just one area in which to gain some value. Obviously you can’t jump with both feet because if it drops below the $ 30,000 level we could drop much further. At this point, the $ 20,000 level would also be an area to watch. If we break down below, we could see a massive sell-off. I don’t think that will happen, however, because unlike the last time we were crushed in this market, there are a lot of institutional investors looking to buy the downside with enough time.