Bitcoin is highly sensitive to risk appetite and it’s very likely that we will continue to see the lack of risk-taking as a headwind when it comes to the idea of the market turnaround.
The BTC/USD market has risen slightly during the trading session on Thursday, as we are sitting on top of the 50-Day EMA. The 50-Day EMA of course is an indicator that a lot of people will be paying attention to, but if we break down below it, then it opens the possibility of a move to the downside. The $20,000 level seems to be a bit of a magnet for prices as well, but quite frankly this is a market that I think continues to see a lot of downward pressure.
Bitcoin is highly sensitive to risk appetite and it’s very likely that we will continue to see the lack of risk-taking as a headwind when it comes to the idea of the market turnaround. The market has been banging around between the $18,000 level on the bottom and the $25,000 level above. That’s about a $7000 range, which is typical for Bitcoin, and therefore it’s likely that we continue to see a lot of back-and-forth noise as we just don’t have any real catalyst for a bigger move.
If we were to break down below the $18,000 level, it’s likely that Bitcoin will unwind quite a bit. It is worth noting that Bitcoin has done reasonably well during the day considering that the US dollar has been strengthening at the same time. I do think that Bitcoin is going to struggle for a while, and at the very best-case scenario being a situation where we are going to go back and forth and kill time.
One situation that we could be looking at is accumulation, but that would take quite a bit of upward momentum eventually to make that be proven. If you are a longer-term holder, then it’s possible that you may be buying little bits and pieces, but more likely than not it’s likely that we will see more of a range bound and back-and-forth type of situation. Keep in mind that we have been in a downtrend for ages, and now the question is whether we are going to continue to go lower? I think that’s more likely than not going to be the case, but I will only follow what the market does. Above $25,000 is a bullish sign, and below $18,000 is a selling signal.