The BTC/USD has rallied slightly during the trading session on Tuesday, but we still suggest below the 50-Day EMA, which of course is a widely followed technical indicator that a lot of people will pay close attention to. It could offer a bit of resistance in general. If we do break above it, that would be a bullish sign in the short-term, but longer-term it’s very unlikely that we would see any real breakout, due to the fact that the risk appetite out there still remains very anemic to say the least, and therefore it’s likely that Bitcoin will continue to be a bit risky for most institutional traders.
When you look at the chart, you can see that the $18,000 level has offered a significant amount of support recently, so therefore I think it defines the overall trend. As long as the market stays above there, then we are more or less going to be looking at a sideways type of situation, as we have almost no momentum in this market in one direction or the other, and therefore I think you’ve got a scenario where you have to look at it through the prism of dead money.
If we do rally enough, then you start paying attention to the $22,500 level, which is where we had sold off drastically from previously, and then again at the $25,000 level. The $25,000 level is an area that I think will be difficult to break above, and it’s not until we clear that area that I would consider this trend being changed. After all, you need to look at the Bitcoin market the same way that it institutional investor does. It’s so far out on the wrist spectrum it’s not even funny, so you need a stable trading environment in order to put money into a riskier asset like this.
- I think we are going to see a real lackluster type of situation in cryptocurrency in general, which of course includes Bitcoin.
- I do not have any interest whatsoever in trying to get along quite yet, and if we break down below the 18,000 level, then I think we may even drop down to the $12,000 level where we can build up a bigger position over the longer-term, getting ready for the next great bull run.