Bitcoin initially pulled back on Friday but then turned around to show signs of strength again as it took out the $50,000 level. This is an area that would be a huge psychological victory, due to the fact that the $50,000 level will attract a lot of headlines and is an area that we have been struggling with recently. Nonetheless, the market is in an uptrend, so it does make sense that we eventually overcame it.
At this point, if we break above the highs of the trading session on Friday, then it is likely that Bitcoin will continue to go higher, perhaps reaching towards the $55,000 level. The $55,000 level above is a target, as it had been important on the daily chart previously. On the other hand, if we were to turn around and break down below the candlestick for the Friday session, then I suspect that the market will go looking towards the $46,000 level underneath that has offered quite a bit of support. After that, the $45,000 level is targeted for support. We also have the 50-day EMA reaching towards that area, so the market is likely to continue to see plenty of buyers underneath.
This will be especially true if the US dollar continues to fall as it did on Friday. It makes sense that Bitcoin would be much more bullish, as it is priced in US dollars. With this being the case, you should also keep in mind that the 50-day EMA has been climbing, showing signs of short-term momentum picking up. To the upside, the $60,000 level would be the target given enough time, but that does not mean that we will get there overnight, nor will we get there easily. With this being the case, I think that you will continue to see buyers jump in every time we dip, and that would be the norm for this market anyway. The continuation of the uptrend seems to be at the forefront of traders' minds, and ultimately you should keep in mind that the market is highly influenced by retail trading, which is all about “FOMO.” That will continue to be the case going forward.
