Continues to Lull Traders to Sleep


Large institutional traders are not interested in trading this currency, because it is so far out on the wrist spectrum.

  • If there’s a place money has gone to die, it’s almost certainly the crypto market.
  • Bitcoin of course is the largest cryptocurrency market around, and it has lost all volatility.
  • Large institutional traders are not interested in trading this currency, because it is so far out on the wrist spectrum.
  • Think of it this way: most large institutions have enough problems dealing with the stock market right now to keep them dancing. In a small market like Bitcoin, you could see destruction rather quickly.

If we break down below the $18,000 level, then it’s likely that the market goes look into the $15,000 level. $15,000 is only a psychological number, and when you look back at the past, there was no real reason to think that the market would stop there. This is an area where we haven’t seen much, so I think you must look toward the structural support near the $12,000 level. The $12,000 level will be a complete “round-trip” from where we had initially taken off in the first place.

Eyes Are on The Federal Reserve

Ironically, crypto traders are going to be paying close attention to the Federal Reserve, which is exactly what they are trying to get rid of. At this juncture, it has become obvious that the market will need to see some type of reason to get moving, and right now we just don’t have one. The Federal Reserve continues to tight monetary policy, and there is so much geopolitical and macroeconomic trouble out there that it’s difficult to imagine a scenario in which somebody wants to throw a ton of money into Bitcoin.

Rallies now will continue to be selling opportunities, with the 50-Day EMA above offering dynamic resistance. Keep in mind that this is a situation where the market has found itself very quiet, so we do get a sudden spike to the upside, there are probably traders above that will be looking to dump their positions anywhere near breakeven. Even if we do break to the upside, the $25,000 level is a major barrier that we would have to overcome to show enough strength to take a rally seriously. Beyond that, you need to see interest rates drop and the US dollar drop as well in order to make Bitcoin attractive for the next potential bullish run.


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