The market is clearly in an uptrend and market structure certainly favors buyers in general.
The Bitcoin market dropped a bit during the trading session on Friday, only to turn around and bounce from the $50,000 level. This is a market that continues to see a lot of interest every time we pull back, so it is likely that the uptrend will continue going forward. After all, Bitcoin is starting to see a lot of inflow when it comes to institutional money, and therefore we have a little bit of support based upon that alone.
The $50,000 level is a large, round, psychologically significant figure, so it makes sense that it has attracted so much attention. That being said, even if we were to break down below the $50,000 level, it is likely that we will go looking towards the $47,100 level where the 50-day EMA sits. After that, I see the $45,000 level as a potential support level as well. The market is clearly in an uptrend and market structure certainly favors buyers in general.
The size of the candlestick was big enough to wipe out the losses from the previous session, so that is a good sign as well. However, we have a bit of a shooting star sitting just above current levels, so that gives a little bit of resistance, but this simply tells me that we are going to continue to see a lot of choppy behavior more than anything else. With that in mind, I think that you need to be very patient and simply look to the overall longer-term trend. This means buying and not selling, and I think eventually we will see this market reach towards the $60,000 level yet again, which had offered so much in the way of resistance.
We have simply gone back and forth over the last couple of weeks, and even if we were to pull back, I think it is not until we break down below the $40,000 level that I would be more worried about the overall trend. The US dollar has softened a bit during the trading session on Friday, so that also helps this pair. With this being the case, I do not see a situation in which I would be a seller anytime soon, so Bitcoin should continue to find plenty of buyers. This is especially true as we are seeing some of the smaller coins pick up traction as well.