BTC/USD
The bitcoin markets ended up relatively unchanged during the day on Wednesday, as we are hanging about below the $5000 level. We have clearly broken down significantly, and it now looks as if we are ready to go towards the $4000 level. I also believe it’s only amount of time before we break down below the $4000 level and open the door to much lower levels. Rallies at this point should be sold, and I think the $5000 level will continue to offer a lot of resistance. Ultimately, this market looks as if it is ready to go much lower, as there is a serious lack of interest in Bitcoin at the moment. I believe there is no catalyst for this market to go higher, and therefore we will continue to drop.
At this point, I think that what we are looking at is a market that simply cannot hang on to upward momentum. I think that the people out there talking about how the “whales are dumping this things so that they can pick it up cheaper later”, are typically people who have never been involved in the financial markets to any great degree, and certainly not professionals. If you want to know how low Bitcoin can go, the answer is zero. I don’t necessarily think that’s going to happen, but we clearly are going to go much lower based upon the recent break down. You will notice how volume has picked up rather drastically on the break down, in a market that had all but been forgotten over the last several months.
At this point, we need to at least close above the 50 EMA on the daily chart before I would consider buying this market. I think that short-term rallies continue to be selling opportunities.
