Bitcoin fell towards the $40,000 level on Wednesday but as you can see, has turned around quite significantly. This is not overly surprising considering that the figure is a large, round, psychologically significant level, and an area that will attract a certain amount of attention. Furthermore, we also have the 200-day EMA sitting just below there, so it is very likely that we will continue to see a lot of interest in this area.
The 200-day EMA is a significant technical indicator that a lot of people will pay close attention to, as it tends to find the overall trend. It is rising ever so slightly, so it is a possibility that we could see markets rally from here. If we break above the top of the candlestick from the Wednesday session, we could go looking towards the 50-day EMA, possibly even the $48,000 level above there. That is an area where we had sold off from quite drastically earlier this week, so it will be interesting to see whether or not we can hold onto it.
If we do break above that level, then the next target will be the 52,000 level, which is where the initial selling pressure occurred. That is a major resistance barrier for the market to take on, and if we were to break above there, then it is likely that the market could go looking towards the $60,000 level. That obviously would take a lot of effort and momentum to make that happen, and at this point it is likely that we will continue to see a lot of choppiness due to this noisy behavior, and the fact that Bitcoin and crypto in general continues to be so overall.
If we were to turn around and break down below the 200-day EMA, then the market is likely to go looking towards the $35,000 level, and then the $30,000 level after that. The $30,000 level is a major “floor in the market” that will attract a lot of attention, but if we fall that far, it is likely that we could go even lower. The market will continue to be bullish as things stand right now, but volatility is the one thing that you have to be very cautious about in this market.
