Potential signal:
- I’d be a buyer of Bitcoin above the 50 Day EMA, which is near the $94,500 level, with a stop loss of $89,000 underneath.
- I also be aiming for the $105,000 level as a target.
During the trading session on Thursday, we have seen the Bitcoin market try to break out above the crucial $90,000 level, and it even did for a while. That being said, the market is likely to continue to see a lot of volatility, and I think this is a situation where we will continue to struggle with the idea of whether or not Bitcoin will continue to go higher, and we have seen a lot of noise over the last couple of weeks as the headlines continue to be all over the place.
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You should also keep in the back of your mind that this is a market that will be noisy mainly from not only headlines, but also from technical analysis. After all, the $90,000 level was a major support level, and it should now end up being a major resistance level. Beyond that, we are also stuck between the 50 Day EMA and the 200 Day EMA indicators, which of course has an influence on what happens next. Technical traders get a little bit confused in these areas sometimes, and it typically leads to some type of explosive momentum.
Bitcoin and Headlines
Keep in mind that bitcoin is highly sensitive to risk appetite, which of course is something that is a bit noisy at the moment, mainly due to the fact that the United States might be entering a recession, and while that could help the idea of the Federal Reserve starting to cut interest rates, the easy money that has typically driven Bitcoin higher wasn’t necessarily due to some type of panic.
Furthermore, we also have to keep in mind that the United States might start some type of Crypto Strategic Reserve, which would be very bullish for Bitcoin in theory, but at the same time, you can also make an argument that it is essentially a distraction from what’s going on in the real world. Remember, Bitcoin is no longer a decentralized currency, it’s an ETF! Therefore, it will behave as Wall Street does.
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