The Bitcoin market initially fell during the trading session on Monday to kick off the week, but we continue to see people jumping into the market just above the $45,000 level. By doing so, the market then bounced above the $50,000 level, as you can see by the daily candlestick. However, we also see $52,000 as a short-term resistance level. If we can break above there, then the market is likely to go looking towards the $58,000 level again.
A lot of this will come down to the US dollar and what happens with that particular currency. Remember, the other half of the equation is the greenback, so how the market behaves towards that currency has to be paid close attention to as well. We have seen a spike in 10-year interest rates, and that has strengthened the greenback over the last several weeks. However, looking at the chart, you can clearly see that we are in an uptrend, so the question at this point is not necessarily whether or not we should be bullish, but whether or not we should be in the market or sitting on the sidelines. When a pullback does occur, then it is very likely we are going to continue to see value hunters coming back into the marketplace. This is a market that I think trying to break towards $60,000, but it may take some work to do so.
To the downside, even if we do break down below $45,000, I believe that we could go looking towards the $40,000 level where we would see massive support based upon the previous breakout level and the 50-day EMA that is currently crossing that region. With that in mind, it is only a matter of time before buyers would step in, so I am looking for supportive candlesticks if we do get a breakdown, because it would only offer value from what I can see. In fact, it is not until we break down below the $30,000 level that I would be concerned about the idea of the overall uptrend continuing. Yes, the market had been overbought, but we have also spent quite a bit of time going sideways over the last couple of weeks. I feel it is only a matter of time before we either break out to the upside or pull back to find even more buying pressure.
