The Bitcoin market has rallied a bit during the course of the trading session on Friday only to turn around and form a less than impulsive candlestick. The $50,000 level has offered resistance more than once, so this should not be a huge surprise that the market has pulled back from that level. All things been equal, a pullback more than likely offers value the people are willing to take advantage of, especially with the area underneath offering an opportunity to pick up “cheap Bitcoin.”
Ultimately, we could turn around and break above the highs looking towards the $55,000 level, or possibly even the $60,000 level that has been important more than once. The market continues to see the $50,000 level as an area of importance, and therefore I think you need to pay close attention to how we react to that level. If we get a daily close well above that level, then it allows the market to go higher. At that juncture, I think we probably continue to see plenty of “FOMO traders coming back into the market.”
The 50 day EMA underneath sits at the $44,000 level, which is an area that a lot of people will pay close attention to not only due to the 50 day EMA, but the area had previously been supportive as well. At this juncture, the market should see a bit of a “hard floor” in that general vicinity. That of course is only assuming that the market suddenly sells off as crypto turns around. Keep in mind that Bitcoin is the main driver for most crypto markets, so a lot of people are going to be trading according to this, not only in this particular market, but also the alt coins.
All things been equal, this looks as if it is a market that is trying to build up enough momentum to break out to the upside, and that could take a little bit of time. With the jobs number coming out on Friday, that could also suck out some of the volume, as the crypto currency markets of course are going to be affected by the announcement due to trading desks collectively holding their breaths. That being said though, we are in a strong uptrend, and I do not see that changing anytime soon.
