The BTC/USD market has rallied a bit during the trading session on Thursday, as we are now threatening the $25,000 level. The $25,000 level is an area that I think will attract a lot of attention since it is not only a physical barrier from previous market memory, but it is also a significant psychological barrier.
If we turn around and break down below the bottom of the candlestick, we could very well drift down to the $22,000 level. What I find interesting about the 22,000 level is the fact that we have the 200-Day EMA that sits right there, as well as the 50-Day EMA. We are getting ready to see a “golden cross” form, and that is a very important indicator for retail traders.
Pay Attention to the US Dollar
- Remember, Bitcoin is essentially a retail market now because, beyond a handful of institutions, there’s nobody else trading it.
- Whether or not we can keep up this momentum is a completely different question, but it is obvious that we have seen quite a bit of buying pressure over the last couple of months.
- The last couple of days have been truly impressive, so now we must see if there’s any follow-through whatsoever. If there is, this could be a big deal as it would allow Bitcoin to truly take off at this point.
On the other hand, we are looking at this as a potential barrier, so if we turn around and fall from the $25,000 level, it would more likely than not open the possibility of a significant pullback. If we break down the moving averages underneath, that would be extraordinarily negative, sending Bitcoin much less work. We are essentially at a major crossroads, so I think we are about to see a bigger move, and if we do clear this area, I think Bitcoin has bottomed and it’s likely that we are ready to go much higher. That obviously has major ramifications throughout the crypto world, and with this being the case I think you’ve got a situation where almost everybody is watching Bitcoin. Pay attention to the US dollar, because it can have a negative correlation, but there’s also the possibility that everybody is trying to do whatever they can to protect wealth, and Bitcoin might be one of the ways they are doing it.
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