The Bitcoin market has rallied during the trading session on Thursday to go looking towards the 50 day EMA. The 50 day EMA of course is an indicator that a lot of Bitcoin traders will pay close attention to. The 50 day EMA has been both support and resistance as of late, so please keep that in mind. Currently, we are stuck in a relatively tight range, and therefore it is going to take a significant amount of effort to break the next move out.
If we can break above the 50 day EMA, that could open up the possibility of a move towards the $48,000 level above, an area that we had seen a lot of selling pressure at previously. Because of this, the market is likely to continue to see a lot of noisy behavior, followed by a potential break out. If we do break out above there, then it is likely to go looking towards the $52,000 level. That was another area that we have seen a significant amount of selling pressure at previously.
On the other hand, if we were to break down below the $40,000 level and the 200 day EMA, then it will more than likely open up a move down to the $37,500 level, which was a significant amount of support previously. If we break down below there, then it is likely that we could go looking towards the $30,000 level. That is an area that has been important more than once, and therefore I think it is probably going to be crucial going forward if we do break down to that area. There has been a lot of technical damage done to the sellers over the last couple of days, so it is more likely than not that we move higher than lower.
Bitcoin continues to be very noisy and not a place to trade on the day-to-day type of time frames. You are either a believer of Bitcoin on the longer-term charts, or you are not. The volatility of crypto continues to be a major issue, which is why so many retail traders have lost so much money. Adding leverage to the situation only makes things worse, which unfortunately the Instagram lifestyle continues to be what drags a lot of people into the market.
