The BTC/USD has rallied again during the trading session on Friday, as it looks like we are hell-bent on reaching the $20,000 level. The $20,000 level was very important for quite some time, and it’s worth noting that perhaps people are starting to jump into this market, based upon the idea that perhaps there’s so much bad news out there that if Bitcoin doesn’t break down, then it’s possible that the market is starting to look at this asset as being oversold.
The $20,000 level will be difficult to overcome, and of course, we have the 200-Day EMA coming into the picture, so it does make quite a bit of sense that we would see a bit of a barrier there. I would be surprised if we break out above there, but if we do that could be the first shot across the bow. I find this interesting considering that we have seen the collapse of FTX, and now it looks like Genesis is going to be a major problem as well. Of course, having said that, there is a certain amount of financial wisdom that says when things look the worst, that’s when you start buying. Maybe that’s what’s going on here, but it’s very difficult to jump in with 2 feet at this point.
I’m Counting on A lot of Momentum
- Looking at this chart, if we were to turn a break back down below the $18,000 level, then it would be a very negative turn of events. Breaking down below the $18,000 level, then you could see the market test the 50-Day EMA underneath there.
- On the other side of the equation, if we were to see this market take out the $22,000 level, that could send Bitcoin soaring.
- Ultimately, I find it very difficult to believe, because although people are trying to suggest that the Federal Reserve is going to start to loosen monetary policy, I think it’s a little bit ahead of the game at this point if you are thinking that’s going to be the case.
The only thing I think you can count on here is a lot of momentum in one direction or the other. It’ll be interesting to see how the weekend plays out, and you should understand that Monday is a bank holiday in the United States, so institutional traders will more likely than not be away from their desks.
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