- Bitcoin has gone back and forth during trading on Wednesday as we continue to hang around the 200-Day EMA.
- It’s probably worth noting that the $22,000 level above has previously been resistance, so it’s probably not a huge surprise to see that this market has stalled in this general area between the 2 issues that it’s dealing with.
- If we were to break above the $22,500 level, then it’s likely that we could see this market go quite a bit higher.
Will the Bitcoin Turn Bullish on the Long Term?
However, there’s a lot to chew through before we get to that momentum, and of course it’s worth noting that we have done almost nothing for the last couple of days. We had a very impulsive move up to this level, and now the market is starting to wonder whether or not we can continue to go much higher as the market had seen quite a bit of fear creep into it during the day on Wednesday. While the price of Bitcoin fared okay, there was a moment during the day where the NASDAQ absolutely plummeted, and the US dollar spiked in value. Whether or not that has an opportunity to stick is a completely different question, but remember, there’s only so much in the way of institutional money in the market at the moment, so it will probably take some type of monetary policy change for Bitcoin to truly take off for the longer term.
Bitcoin on exchanges has dropped by 44%, which typically in the past has been a very bullish sign, however one has to wonder how much of it has to do with the idea of all of the Ponzi schemes and the crime going on with various exchanges. After all, on what planet would it be a good idea to leave Bitcoin on an exchange in the first place? Previously, people assumed that when Bitcoin was taken off of an exchange, it’s because people planned on hanging onto it. While that may be true now, it’s a little bit different than it once was, so it’s worth noting that difference before trying to read too much into it at this point. If we break down below the $20,000 level, that’s probably the last of the upward momentum for a while. On the other hand, if we do break above that $22,500 level, then it’s possible we could go to the $25,000 level.
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