- The Bitcoin market has fallen pretty significantly during the trading session on Friday, as we have also sliced below the 200 Day EMA.
- All things being equal, this is a market that will more likely than not continue to be very noisy, and the fact that we continue to see a lot of “risk off” behavior around the world, it makes a certain amount of sense that Bitcoin will be susceptible to selloffs.
Regardless, it’s probably worth noting the Bitcoin is essentially in a range at the moment, with the $90,000 level above being a significant barrier, which also has the 50 Day EMA sitting just below there. If we can break above the $90,000 level, then you would see the market really start to take off at that point in time. You would see the market clear couple of major indicators, and of course the massive $90,000 region. In that environment, Bitcoin could go looking to the $96,000 level.
Alternatively, if the market were to break down further, we could go as low as the $75,000 level and still stay in the same overall trading range. As long as we stay above the $75,000 level, then the market is still somewhat buoyant, but all things being equal, I think we also have to recognize the fact that Bitcoin simply has no real momentum. Most traders I know are not necessarily aggressive with Bitcoin at the moment, and in fact they are approaching Bitcoin with the idea of dollar cost averaging.
Bitcoin Will Continue to Struggle
I do believe that going forward, Bitcoin will continue to struggle, at least until we can get some type of clarity when it comes to risk appetite around the world. Wall Street does not want to be involved in a risky asset such as bitcoin when there are more basic questions to ask like whether or not there are going to be tariff wars around the world. At this point, it does look very likely, so I would keep that in mind.
As long as that is going to be the case, more esoteric and eccentric assets are going to continue to suffer, which of course includes Bitcoin and pretty much anything related to crypto. However, if Bitcoin starts to turn things around, that could drag the rest of the crypto space right along with it.
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