The Bitcoin market has pulled back a bit during the trading session on Thursday as we may have gotten a bit ahead of ourselves. That is not a huge surprise, because the market shot straight up in the air for several days in a row, and then stalled a bit. That suggests that we are a little overdone, so now that we have pulled back towards the $44,000 level, it does make a certain amount of sense that we would have some negativity or at least a bit of profit-taking. Now that we are starting to see that, the likelihood is that the market will go looking towards the $40,000 level for massive support.
The $40,000 level is an area that previously had been significant resistance, so it now should be a certain amount of support. Ultimately, the market is likely to continue to find buyers on dips as we have clearly turned a corner here. With that being the case, I think that the market will continue to be bullish in the short term, especially as we start to worry about inflation. After all, Bitcoin sometimes is using inflation as a reason to go long, and therefore I think we will continue to see that play out.
The 50 day EMA is starting to race towards the $40,000 level, showing signs of that level strengthening yet again. If we were to break down below the 50 day EMA and the $40,000 level, then it is likely that the market could go looking towards the 36,700 level as the 200 day EMA sits there. Beyond that, the market could go looking towards the $30,000 level underneath, which was the bottom of that massive consolidation area that we have been in for a while. All things being equal, this is a market that I think continues to see a lot of volatility, but the market certainly looks as if value hunters will get involved in this market to go long and try to push the market back to the $50,000 level. The $50,000 level of course is a large, round, psychologically significant figure, and an area that previously had offered quite a bit of support, so therefore it should offer resistance. I think it can take a while to get there, but it certainly looks as if it is the target.
