We are going to continue to see a lot of bullish pressure on the US dollar, which it works against the value of Bitcoin.
- The BTC/USD currency pair did very little as far as upward mobility is concerned over the course of the last several days.
- While Friday did look a bit more bullish than the previous sessions, the reality is that the market has a lot of work to do before it becomes remotely positive.
- Because of this, I still feel that we have plenty of time to get long of this market assuming that we even want to be.
Volatility Likely Amid Aimslessness
The Bitcoin market is hovering around the $23,000 level, which is an area of some interest, but at the end of the day, we are essentially going back and forth and trying to find some type of directionality. The market gave up most of the gain for the day anyway, so it looks to me as if the market is going to continue to see a lot of volatility more than anything else, and even if we were in the process of trying to build up a bit of an accumulation phase, the market has a lot to do convince everybody to get long.
As jobs numbers came out hotter than anticipated Friday, interest rates in the United States spiked. This suggests that we are going to continue to see a lot of bullish pressure on the US dollar, which it works against the value of Bitcoin. Ultimately, the 50-day EMA underneath should offer a significant amount of support. The $20,000 level underneath there is an area that I think a lot of people will pay close attention to, as it is a large, round, psychologically significant figure, and could lead to even more selling pressure to the downside. If we were to break it down below there, it opens up the possibility of Bitcoin going down to the $12,000 level. The $12,000 level would be an area that a lot of people will be paying close attention to.
On the other hand, if we can break above the $25,000 level, it’s possible that we could go to the $28,000 level above. Between the $28,000 level in the $32,000 level, I expect to see a lot of resistance and therefore think it’s going to be very difficult to get above any time soon. If we were to do that, it would change the overall trend.
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