- BTC/USD took off during the trading session on Wednesday, gaining just a bit under 7%. This is a very strong move, as we have bounced from the crucial 200-Day EMA.
- This suggests that perhaps we are going to do everything we can to break out but there’s a lot of noise just above the comes into the picture.
- I think at this juncture, you need to look at this as a market that is on the precipice of making a bigger move, but if it does in fact make that move, you would have to assume that you have plenty of time to get involved.
When I look at the chart, the most obvious feature is going to be the $25,000 level, then I think does offer a lot of selling pressure. Between the $24,000 level and the $25,000 level, I think there are a lot of sellers there waiting to get involved. On the other hand, if we were to turn around a breakdown below the 200-Day EMA, that would obviously be a very negative turn of events. I wouldn’t hold my breath for that to happen anytime soon, especially after we have seen this move on Wednesday. Whether or not we can break out is a completely different question, but it’s obvious that we have a certain amount of buyers underneath that will probably get involved.
Choppiness and Noise Ahead
I would expect choppy and noisy behavior, but if we continue to get more of a “risk on move” around the markets, then I think you have a situation where Bitcoin really could take off. In that environment, I would anticipate that not only would Bitcoin take off, but you would probably see a lot of other cryptocurrencies do the same.
The question now is whether we have bottomed. After all, crypto has taken an absolute punch to the face over the last year or so, but this would be a very quick turnaround, so I am a bit leery at the moment. I think generally speaking, it’s probably best to be cautious at this point, because you could be setting yourself up for failure if you get too heavily exposed to Bitcoin. That being said, pay close attention to the $25,000 level because it will mean quite a bit as to where we go next.
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