Keep in mind that it is going to be very difficult to simply slice through the upside, so I think we have more of a grind ahead of us than anything else.
The bitcoin market has rallied ever so slightly during the trading session on Thursday as we continue to see the market try to find its footing. We are currently stuck between the 50 day EMA above and the 200 day EMA underneath, offering a bit of confusion for the markets. That being said, the $40,000 level also happens to be right there at the 200 day EMA, so it does make quite a bit of sense that it offers significant support.
Furthermore, we had seen a bit of a reversal over the last couple of days anyway, so it makes a certain amount of sense that we continue to see an attempt to go higher. Ultimately, the market that also sees a lot of interest at the $48,000 level, where we had seen significant selling. If we can break above there, the market is likely to go looking at the $50,000 level, possibly even the $52,000 level where we had seen a lot of selling pressure from as well. With this being the case, I think the market is going to try to break higher, but it has got a lot of work to do in order to make it actually stick.
If you turn around and break down below the 200 day EMA, then it is likely that the market goes looking towards the $30,000 level. That is an area that I think it is going to be a massive “floor of the market” going forward, because if we were to break down below there, I think the trapdoor opens up and we go much lower. The market will almost certainly see a lot of momentum jumping into at that point in time, and therefore anything below the $30,000 level will probably attract a lot of attention, perhaps beginning to see some type of crash.
The market certainly looks as if we continue to see more of a “buy on the dips mentality” more than anything else. If we can break above the 50 day EMA, then it is likely that we should see quite a bit of upward momentum. Nonetheless, keep in mind that it is going to be very difficult to simply slice through the upside, so I think we have more of a grind ahead of us than anything else.