Quite frankly, I’m not that impressed at this point.

Bitcoin initially attempted to rally during Thursday’s trading session, but appears to have given back early gains to show signs of hesitation during the 50-day EMA. The shape of the candlestick suggests we may have some negativity ahead of us, but I think it’s probably only a matter of time before we see the sellers return and pull the market back. That being said, the market is more likely to continue to see a bit of a barrier above.

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Below, the $40,000 level should be a support zone, as we have a large, round and psychologically significant figure, and of course the fact that we have already seen the market react to it on several occasions. For this reason, you should take a look at Monday’s session hammer and assume that as long as we can stay above the low of the candlestick, there is still a possibility that Bitcoin could rally. However, it’s probably worth noting that Bitcoin has been underperforming lately, and when you look at this chart you can see that even though we’ve been rising over the past two months, it’s been a real struggle.

Looking at this chart, it’s obvious that the market will continue to see a lot of noisy behavior, and I think because of that, you have to think of this as a market looking for some form of clarity. After all, the market hasn’t found any real sustainable movement, and so I think what we’re seeing here is a situation where we’re trying to build the momentum to break above the 200-day EMA, but obviously we couldn’t do it.

On the downside, if we break below the $37,500 level, there is a chance that the market will then reach the $35,000 level, and maybe even $30,000 on a bigger move. I believe this is a market that over the longer term will continue to deteriorate overall as we simply don’t have a real catalyst one way or the other to move . Quite frankly, I’m not that impressed at this point.

BTC/USD chart

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