We need to see a major breakdown where people start to panic again, and then stability.
The Bitcoin market fluctuated during the course of the trading session on Monday, as we have no idea what to do with ourselves. After all, we recently have seen a massive amount of volatility over the last couple of weeks, and you can see that the $40,000 level has caused a significant amount of resistance. Given enough time, the market will probably try to break above it. However, we do not want to see this market simply shoot straight up in the air, because it would become even more over-extended. This is the last thing you want to see in a market that has recently been parabolic.
The candlestick for the trading session again on Monday simply shows just how uncertain we are at the point of recording. A market breaking down below the bottom of the candlestick for the trading session on Monday could be a good sign, because the market could drop down towards the $30,000 level in order to build up more of a base. If we break down below there, then the market could go looking towards the 50-day EMA where, I think you could also do that.
The markets have gotten too far ahead of themselves, and at this point, most traders have been trying to front run the idea of institutional traders coming in. However, they will not simply come in and buy Bitcoin at any price. I think what we need to see is an opportunity to pick up Bitcoin “on the cheap.” I do think that a significant correction still should be coming, but I do not necessarily think that it is going to be like a few years ago. After all, it has shown itself to be a bit more resilient, and a lot of institutions are looking at Bitcoin, so we need to see a major breakdown where people start to panic again, and then stability. At that point, we would probably continue to go looking towards the $50,000 level. I do not think that it is very prudent to get involved in Bitcoin with both feet right now, I think you simply need to get involved very slowly, looking to pick up value as it occurs.