BTC/USD
Bitcoin markets broke down a little bit during the trading session on Tuesday as we continue to drift lower. The 50 EMA on the daily chart continues to slope to the downside, perhaps sending this market down to the $6000 level underneath. This is a market that has been very quiet lately, and I think we are essentially waiting for some type of momentum to start trading. If you are short-term trader, obviously you can go back and forth in a range bound type of trade, but it seems very unlikely that we will continue to have a huge move anytime soon. It seems as if volumes are doing nothing but shrinking at this point, and for what it’s worth barchart.com has now even removed it from the front page of their website.
At this point, I think there is significant support down to the $5800 level, so a break down below there would be what I think would send this market much lower. Ultimately, I think if we can break above the 50 EMA, the market could go higher, perhaps reaching towards the $7000 level. Clearing that area would send this market much higher, but I don’t think that’s happening anytime soon. Expect very little in the way of momentum, at least in the short term, but I think that this overall sideways pattern is probably going to continue for the foreseeable future, so unless you have the ability to scalp this market, it is at best going to be a longer-term buying opportunity if support holds. That is the one good thing about this market, $6000 has been so heavily defended as of late, and I think we’re going to continue to see buyers in this area supported the market.
