Bitcoin dances around the 50-day EMA
It is a market that cannot be bought.
The Bitcoin market fell during Tuesday’s trading session to hit the 50-day EMA, the most common indicator that many trend traders use in the Bitcoin market. You can see that the 50 day EMA has been an area that buyers have come to the market several times. Additionally, you can see that the $ 50,000 level below continues to be crucial, as the tall, round, and psychological aspect of this level has caused some buying pressure in the past.
If we can stay above the 50 day EMA then I believe the market will probably turn to the $ 60,000 level and then maybe the $ 65,000 level which was the highest most recent level. In general, it’s a market that I think continues to see declining buyers, due to the fact that we’ve been in such a strong uptrend. Recently we’ve seen more of a market on the side, but that’s a good sign when you’ve seen the market go up in the air like it has. Because of this, we might have a bit of choppy trading ahead, but ultimately the buyers will keep trying to break out the highs.
If we were to fall below last week’s lows, that could pave the way for a drop to the $ 45,000 level, which would be followed very quickly by the $ 40,000 level. This is an area that will get a lot of attention due to the fact that it is an integer, but it is also where the market has seen stocks in the past. Beyond all that, we also have the 200-day EMA that would also come into play. The 200-day EMA is without a doubt one of the most important metrics we can look at.
If we were to fall below the 200 day EMA it is very likely that we could go much lower, and at this point I would consider the trend to be broken. Until that happens, I believe this is essentially a “one-way market”, although we can certainly hear quite a bit of noise. It is a market that cannot be bought.