I think we will have a situation where shorter-term traders will be jumping out, while longer-term traders may be picking it up.
The $24,000 level has been important a couple of times now, so it does make a certain amount of sense that we would see the markets pull back from here. However, that does not necessarily mean that we have to break down from here. More likely than not, we will see a situation where we go back and forth until we can sort things out. I do not believe Bitcoin has seen the bottom yet, but it is at least making a significant argument for stabilization.
If we break above the $25,000 level, that could open up the possibility of a move to the $28,000 level, but that’s an area that is resistant as well. It extends all the way to the $32,000 level, so I believe it would be difficult to break above there. If we did, that would change the entire trend, perhaps sending Bitcoin to extreme highs.
Looking at this chart, it’s obvious that we have been in a downtrend for quite some time, so it’s going to be difficult to be bullish at this point. I think that rallies will continue to get sold into, as the US dollar is still strong, despite the fact that the US dollar has pulled back just a bit. Ultimately, this is a market that will continue to see a lot of selling pressure given half a chance, as there is a lot of negativity out there, and I think it will not take much to scare traders. That being said, some of the longer-term holders have been using this recent area to pick up a little bit of value, but have a longer-term perspective than most traders. Because of this, I think we will have a situation where shorter-term traders will be jumping out, while longer-term traders may be picking it up.
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