Keep in mind that Bitcoin is far out on the wrist spectrum, so we need to see traders willing to step out and away from safety assets to get over here.
- The BTC/USD has pulled back just a bit during the training session on Wednesday as we have pulled back from the 50-Day EMA, and traders have started to realize that the “risk off rally” was fading.
- Keep in mind that the Bitcoin market desperately needs a lot of hot money in it, since it has no real fundamental reason to go higher anytime soon.
- In fact, there are a lot of questions when it comes to adoption, because here we are 12 years later, and nobody really is using it.
People will trade anything that they can push the market around in, and I think it’s probably only a matter of time before institutional money starts to make its presence felt again. In the short term, I look at the $18,000 level as a major support level, and if we were to break down below it, then it’s likely that Bitcoin will drop rather significantly. Keep in mind that Bitcoin is far out on the wrist spectrum, so we need to see traders willing to step out and away from safety assets to get over here.
Anticipating Market Memory at the $12,000 Level
If we were to rally from here, the $25,000 level is almost certainly going to be a major, Ceiling in the market.” The $25,000 level being broken to the upside would be a huge turn of events and could change the entire attitude toward this market. If we were to break above the $25,000 level, then we will threaten the 200-Day EMA, which of course is a longer-term situation. If we were to break above that, then it’s all but done now.
A breakdown below the $18,000 level allows the market to go down to the $15,000 level, possibly even the $12,000 level after that. The $12,000 level underneath is where we had initially pushed higher to run all the way toward the $68,000 level, so I would anticipate a lot of market memory in that area. In that area, it’s likely that we will see a bit of position building, as we could enter a huge “accumulation phase.” That is an area that could last for several years, but for those who are a little bit longer-term, it could be a good way to build up for the next bullish run.