We have a long way to go before we change the overall attitude of the market.
The Bitcoin market rallied rather significantly on Monday to reach towards the 50-day EMA. This is sitting just below the $44,000 level, and we have seen a big move over the last couple of days that has caught a lot of attention. The question now is whether or not we will continue to go higher, or if we need to pull back. There is even the possibility that this was just simply a bit of a “dead cat bounce.”
A pullback is probably to be expected after these last couple of days, and the $40,000 level should be rather supportive. In fact, if we fall back below the $40,000 level, at that point I think the market would be in serious trouble. This would certainly have Bitcoin testing the lows again, but right now it does not look like traders are that concerned about it. It will be interesting to see how the next 24 hours play out, but I would love to see some type of pullback in order to offer a little bit of value. After all, you do not want the market going straight up in the air because that typically can cause issues down the road. The 200 day EMA sits just above at the $45,600 region, so that could come into play as well.
Pay attention to the US dollar, as that could also have a certain amount of influence, but at the end of the day I think we are more likely than not to find one reason or another to try to recover. However, keep in mind that there are a lot of concerns out there economically, and if we get a sudden “risk off” type of situation, that works against cryptocurrency in general, not just Bitcoin. We have had a couple of really good days, and that certainly is something to be happy about. However, we have a long way to go before we change the overall attitude of the market. I would love to see more basing in this general vicinity to try and calm nerves, because that is what we need at this point in time: a bit of stability in order to bring more money into the market.
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