Expect a lot of noisy behavior on short-term charts, but we have clearly made a statement during the Monday trading that Bitcoin is primed to go much higher.
Bitcoin broke above the crucial 200-day EMA, and perhaps more importantly, the $45,000 level. This is an area that has been resistant previously, so breaking out of there is a strong sign. Furthermore, we have a candlestick that has closed that the very top of the range, suggesting that we are going to continue to go higher. At that point, the market will more likely than not go looking towards the $50,000 level.
The $50,000 level is an area that will cause a bit of resistance, not only from the structural standpoint but also from a psychological standpoint. The $50,000 level will cause quite a bit of noise, so I think it will be interesting to see how this plays out. A break above the $50,000 level will almost certainly send the Bitcoin market much higher and will have more money chasing the trade. The size of the candlestick is rather impressive, and it is worth noting that the 50-day EMA is starting to curl higher, perhaps trying to break above the 200-day EMA.
If we were to turn around and break back into the previous consolidation area, that might be a bit of a bad look, but we will cross that bridge if and when we finally get to it. The attitude of the market is one of expectation of higher pricing. This is interesting that it has worked out this way, so the question now will be what happens on the next battlefield? The next battlefield is that $50,000 level, and if we can clear the $52,000 level, it could open up a move all the way to the $60,000 handle.
The only thing I think you can count on now is that we are going to see a lot of noisy behavior, but I think the occasional pullback will now offer a buying opportunity unless something changes quite drastically. I believe that the $45,000 level as well as the 200-day EMA both could offer a certain amount of support.
Expect a lot of noisy behavior on short-term charts, but we have clearly made a statement during the Monday trading that Bitcoin is primed to go much higher. Because of this, I would hesitate in selling Bitcoin anytime soon, as it has made such a strong move.
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