The market would almost certainly expect buyers to be in that area, and I think at that point in time you could start to see a bit of a “accumulation phase.”
The $15,000 level is an area that people will be paying close attention to, as it is a large, round, psychologically significant figure. That being said, there is not a lot of historical support in that area, so I think it probably opens up the possibility of a drop below there to reach down to the crucial $12,000 level, an area that had been important previously, and where we started the latest bullish run from. The market would almost certainly expect buyers to be in that area, and I think at that point in time you could start to see a bit of a “accumulation phase.”
In this scenario, I would be a buyer of Bitcoin, although in bits and pieces as I think it becomes a longer-term type of strategy. Ultimately, this is a market that I think will continue to see noisy behavior, but at the end of the day, I think the volatility will keep a lot of people out of the market. Furthermore, you have to keep in mind that the Federal Reserve continues to tighten monetary policy, and that works against the value of Bitcoin and risk appetite in general. Looking at the start, it’s very likely the rallies will continue to be faded, especially near the 50-Day EMA. The 50-Day EMA is a well-known trend defining indicator, and therefore it’s likely that we will see a lot of noise.
The $25,000 level above is a large, round, psychologically significant figure, and an area that I think would define the trend if we could break above there. However, if we were to break above there, it could change a lot. I don’t see that happening until we change the overall attitude of the market, but it looks more “risk off” than anything else.