- Bitcoins hammered on Monday.
- As you can see, we've dropped over 3%.
Now we're starting to threaten the $60,000 level, which I think is where the rubber meets the road as it were. If we can hold $60,000, then this will end up being a nice buying opportunity and range mount traders will have profited quite nicely.
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However, if we break down below the $60,000 level, this will be the second time that we've broken through there. And I don't believe in coincidences. The 200-day EMA sits just below that near the roughly $58,000 level. So that would be your next support level. If that gets violated, then Bitcoin is going to absolutely fall apart.
This is an interesting way of determining what to do next mainly because we had shot straight up in the air for six weeks gaining 92% as Wall Street jumped into the for a offer in an ETF for people to buy Bitcoin on the stock exchange and found themselves jumping into buy physical Bitcoin to hold in this ETF and sell to the retail public.
“Here Mr. Retail Trader, Hold My Bags….”
And now the question is, did Wall Street just pump up an asset yet again and hand it off to the retail trader? I mean, that's actually their job, so it wouldn't be surprising at all. That being said, the next couple of days are going to be crucial for Bitcoin. We'll have to wait and see whether it can hold $60,000 because if it does, then this ends up being a buying opportunity. At this point though, we just don't have any real momentum to the upside, so I'd be very into Bitcoin with big positions anytime soon.
After all, Bitcoin has done this before only to have traders sitting on the sidelines for months trying to get back to break even. So, by all means be cautious. I am not saying BTC is dead and gone, but the next few days are crucial.
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