- The BTC/USD market has rallied significantly during the trading session on Tuesday, getting over 7% as the JOLTS Jobs Openings in the United States came out with “only 8 million jobs listed”, instead of 9 million jobs.
- It’s probably worth noting that we are at the bottom of the recent consolidation area, with the 200-day EMA hanging around there.
- Because of this, it’s very possible that we could bounce all the way to the $31,500 level, and still simply stay in the same range we have been in. Anything above there would obviously be very bullish, but it would take a certain amount of momentum to make that happen.
If we were to turn out a breakdown below the $24,000 level, then it’s likely that we go down to the $21,275 level. That’s an area that had previously been supported, and therefore I think you have got a situation where the market would find quite a few buyers in that area. Anything underneath that would be absolutely toxic for Bitcoin.
Another thing to pay attention to is that the Consumer Confidence numbers coming out lower than anticipated have people thinking that the Federal Reserve might have to jump into the foray of loosening monetary policy, and that’s exactly what Bitcoin markets thrive on. In fact, Bitcoin was a direct response to the idea of central bank-loosened monetary policy, and of course the flooding of liquidity. That being said, I do think that given enough time we should go higher, assuming that the interest rates do continue to drop in the United States. If we break out to the upside of this rectangle, then it’s possible that Bitcoin could go looking to the $40,000 level.
Volatility Ahead
In general, I think you will see a lot of volatility, and it would not jump into Bitcoin with both feet, and therefore I think you got a situation where the value hunters will continue to come into the markets, and therefore it’s probably only a matter of time before we take off, but right now we need to get past that crucial $32,000 area, which would open up a lot of “FOMO trading”, and of course chasing of returns. On the other hand, if we break down from here, then we could see a massive flush lower. While Bitcoin looks good for the day, you need to be cautious about getting too aggressive.
Potential signal: Buy BTC @ $32100, with a stop loss at $28500. Target will be $39150.
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