BTC/USD
The Bitcoin market fell during the trading session on New Year’s Eve, showing more signs of weakness and a perfect ending to the year that has been so bad. The 20 day EMA is offering dynamic resistance, and most certainly the 50 day EMA will as well, which is all the way up at the $4500 level. At this point, I think that we will continue to see markets sell off every time we rally, and the first signs of exhaustion could be a selling opportunity. At this point, the market will then go down to the $3000 level, an area that has been support.
Ultimately, I don’t think that we are going to break above the 50 day EMA, and it’s not until then that we can consider buying. In fact, I think the $5000 level would also be a major issue as well. Because of this, every time the market rallies, I would be looking for opportunities to start shorting. Ultimately, I think that we will even break down below the $3000 level, which although it was supportive, isn’t necessarily an area that will hold this market to the upside.
Bitcoin and simply can’t get out of its own way, so it makes sense that buying is all but impossible. I think that the market will continue to see more selling as we are simply seeing almost no adoption of substance. Institutional money hasn’t exactly jumped in and lifted the crypto markets up, so at this point it’s likely that the bearish pressure will continue. Selling the rallies has worked for 12 months, so I don’t see any reason why we won’t continue to see more of the same. Beyond that, the US dollar has strengthened a bit, so it’s likely that the bearish pressure will continue.
