- The BTC/USD rallied to kick off the trading session on Tuesday but gave up gain rather quickly.
- After all, Bitcoin continues to be a very bearish market, and I do think that it is probably only a matter of time before it loses your money yet again.
- I think this is a situation where if you get an opportunity to get out of a bad position anywhere near breakeven, you will take advantage of it.
- That’s part of what causes “market memory”, and resistance.
The shape of the candlestick is most certainly a shooting star, and now we are sitting on top of the major support level in the form of the $18,000 level. The $18,000 level is an area that should continue to be important, and therefore if we break down below it it’s likely that the bottom will fall out, and Bitcoin will continue to go much lower. In that scenario, it’s likely that we will continue to drop down to the $15,000 level, which is the next major psychologically crucial level. Ultimately, that is just going to be a bit of a bump along the road, as there is more structural support to be found that the $12,000 level.
Market Likely to Continue Going Back and Forth
If we do rally from here, I would not be a buyer of the market anytime soon, as the market would have to break up of at least the $25,000 level to be remotely bullish and convincingly. The market breaking above the $25,000 level could be thought of as a potential turnaround, and trend change. However, it’s going to take quite a bit of effort to make that happen, and obviously a lot of things would have to change. At the very least, you would need to see the US dollar struggle a bit, but the reality is that it needs the Federal Reserve to step in and change its monetary policy. That seems to be very unlikely at this point, especially as inflation continues to range. More likely than not, we are going to see a lot of back and forth as the market tries to figure out where to go for a bigger move. Fading rallies continues to be the best way forward, as Bitcoin is far too stretched out on the wrist spectrum to be supported.
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