It just seems as if this market cannot get up off of the mat.
The Bitcoin market fell on Friday as we continue to see a lot of selling pressure near the $45,000 level. In fact, we started to pull back during the trading session on Thursday, and we simply continue to see a lot of negativity on Friday. The $40,000 level will almost certainly be targeted at this point, as it is an area that attracts a lot of attention. I do not think it will hold, though, and I would not be surprised at all to see this market break down below there.
As you can see on the chart, I have formed a massive rectangle. This rectangle I believe represents the trading range that we are currently in, and I do think that is something that is worth paying attention to. If we break down below the bottom of the range, near the $34,000 level, this market could fall apart and go looking towards the $30,000 level. I do not believe that this market has the ability to turn around and take off to the upside, because this was supposed to be Bitcoin’s moment.
If you think about it, there has been a lot of Bitcoin and Ethereum raised for the war effort in Ukraine. Even with all of that demand, we have seen the market fall. This tells you just how fundamentally flawed the market is at the moment. Whether or not it is something you believe in going forward, the reality is that price is going lower, and we did close towards the bottom of the candlestick. You can argue whether or not Bitcoin is the future, but the reality is that the future prices seem to be lower. As long as that is the case, you need to be very cautious with this market and understand that it is more likely to go lower than it is to go higher.
That being said, if we broke above the $45,000 level decidedly on a daily close, then we might go looking towards the $50,000 level which would be the next major area of interest. Breaking above that then opens up the possibility of an even bigger move, but that does not seem likely at this point as it just seems as if this market cannot get up off of the mat.
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