The Bitcoin market rallied a bit on Monday as we continue to try to break to the upside. That being said, the market is obviously struggling a bit with the idea of continuing a big move to the upside, which could be expected due to the fact that we had been so parabolic late last week. After all, momentum only lasts for so long, so it is not a huge surprise that we had to take a little bit of a breather.
Just above, the market extends all the way to the 52,000 level as far as resistance is concerned, and at this point, the market is likely to continue to see upward pressure, but we are probably going to be much slower about rising than we had been during late last week as momentum broke out. The 50-day EMA currently sits just below the $45,000 level, which is an area that we need to pay close attention to. That is an area where I think a lot of value hunters would jump back into in order to pick up “cheap Bitcoin.” If we break down below there, then it is likely that the $40,000 level becomes even more supportive, as it is a large, round, psychologically significant figure, a previous resistance barrier, and also attracts the 200-day EMA currently. In other words, there is a lot going on in that general vicinity.
If we were to break down below all of that support, it would be very negative to say the least. At that point, we could open up significant selling pressure, but right now it certainly does not look like we are anywhere near threatening to do so. The most likely of outcomes over the next couple of weeks will probably be more of a grind higher, but if we can break above that $52,500 region, it would signify that the market is ready to go looking towards the $60,000 level above, which features the most recent all-time highs. I do think that we are going to try to get there, but it is probably going to take quite a bit of work to get there anytime soon. The last couple of impulsive candlesticks have been to the upside, so one would have to think that the momentum is going to continue to favor the upside in general.
