The bitcoin markets exploded to the upside as the US dollar got hammered during the trading session on Thursday as the US dollar got hit. That being said, the bitcoin market has hit the $15,000 level before pulling back, which of course was the target that I had in mind. We are still overbought at the moment, and I think that a little bit of pullback could be coming. That of course is a good thing, because it gives you an opportunity to pick up a little bit of value.
The $14,000 level would be the first major support level that I see underneath, but as you know if you have been watching me for a while, I would really prefer to see some type of move down towards the $12,000 level. That obviously would be a much more significant pullback at this point, but we all know that bitcoin does tend to move rather rapidly and has absolutely no qualms about moving 7% in a session. Because of this, what we are looking at is a market that has most certainly decided its overall direction, it was central banks around the world doing everything they can to bring their own currencies to a crisp, it makes sense that we will continue to see bitcoin be a winner, along with other markets.
While the market has been very explosive as of late, sooner or later we run out of momentum. Once we do, that could be a nice buying opportunity on a drift lower. Do not get me wrong, I do not think that shorting this market as possible, because it would only be a matter of time before we see some type of massive turnaround. The 50 day EMA is now down at that $12,000 level as well, so that makes that area even more interesting to pay attention to.
That being said, now that the $15,000 level has been tested, the next major victory for the buyers would be to close the market above $15,000 on a daily candlestick, something that is still possible with the one we are forming. Regardless, there is no way to short this market, unless you are looking to lose money. That does not mean that you should run into the market right away and start buying, when a market is like this and has extended this far, you need to be very patient and build your position slowly. Chasing the trade is one of the greatest ways to lose money.
