Bitcoin continues to grind a bit sideways overall as we can’t go anywhere. After the action yesterday, it’s not a bit surprising that we simply sat still. With that in mind, let’s take a look at a couple of potential moves coming up.
Bitcoin has rallied slightly against the US dollar during trading on Monday but gave back those gains as we turned around to form a less than impressive candlestick. That being the case I think that the market is likely to continue to rollover and start selling off again. I believe that the $3500 level will more than likely be a target for the short-sellers, but I also believe that we will break down below there. When I look at the chart, it’s very obvious that the 200 day EMA is flattening out but it looks as if the 20 and the 50 day EMA are crossing sooner rather than later, and that should send this market even lower.
Initially, I would anticipate that a break down should send this market looking for the $3000 level, which of course will attract a lot of longer-term attention. Nonetheless, I think that rallies at this point will probably continue to offer selling opportunities as we have a massive amount of bearish pressure above, not only at the downtrend line but also the $4000 level. Quite frankly, while most of the crypto currency world got excited about an 8% gain on Friday, the reality is that it is an 8% gain from much lower levels. When looked at from a relative strength perspective, there’s almost no reason to think that the market suddenly changed its attitude overall. I remain a seller on rallies.