- Bitcoin has risen slightly during the trading session on Tuesday, as we continue to wait for some type of momentum to come back into the market and determine the overall direction.
- Recently, we have seen the $25,000 level offer a lot of resistance, and I do think at this point it’s likely that we continue to see more of a push and pull type of scenario.
- I believe given enough time, we will have to make a much bigger decision, but right now it looks as if the market is happy to simply grind away and this general vicinity.
Bitcoin Market Will Struggle to Rally
The 200-Day EMA sits just below, hanging around the $22,000 level and will continue to be of interest. Ultimately, I think this is a situation where that will attract a lot of attention if people are in fact seeing the market crash through there. If it does, then I think Bitcoin is in serious trouble. Ultimately, this is a scenario where we will more likely than not see a lot of indecision, but if we were to break through that area, then Bitcoin will give up its gain. In that scenario, I would anticipate that we go right back into a bearish market, which is what I would anticipate anyway, due to the fact that monetary policy is going to stay much tighter than people anticipate. However, if the Federal Reserve does acquiesce, then it’s likely that the market goes looking to reach above the $25,000 level.
On a move above the $25,000 level, we could see Bitcoin really take off, opening up the possibility of a new bullish run. While that is possible, to me it looks like there is enough resistance above that we will continue to see this market struggle to rally, and I think we’ve got a situation where the signs of hesitation will eventually weigh upon the psychology of traders. If that does happen, I will not hesitate to short this market, but right now it looks like were just treading water and trying to figure out whether or not the latest pop higher in the crypto market was the real deal or not. One thing is for sure, as most markets have shown, volatility hasn’t gone away, and of course crypto will be even worse than many other markets.
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