Bitcoin to Test Major Resistance
- Bitcoin trying to break out
- Crypto testing 200-day EMA
- Downtrend line also being tested
Bitcoin continues to attract a lot of attention considering that the market has broken down significantly. The cryptocurrency’s market has been all over the place during the last year or so, and as a result, it has offered a lot of volatility for short-term traders.
However, Bitcoin also tends to go silent for long ranges as well. So, with that in mind, it is a matter of timing the market in order to make profits.
The Bitcoin market against the US dollar has gone back and forth during the last couple of days, as it is hanging around the 200-day EMA. This figure is obviously a significant technical indicator that people pay attention to, so there will be a lot of volatility on short-term charts.
However, if one is to play this market, it is paramount that the longer-term trend is taken into account. With that in mind, the 200-day EMA continues to cause a lot of issues.
The downtrend line will continue to influence trading as well, so that is something that needs to be paid attention to. In other words, the market needs to clear the $8500 level before it shows a significant amount of momentum to entice buyers of any significant time frame.
Because of this, signs of exhaustion will probably continue to be jumped on by short sellers. That being said, break down below the 50-day EMA, shown in red in the above chart, would open up fresh selling and show further weakness.
What is truly interesting is that the US dollar has been hit rather hard against certain currencies, yet Bitcoin sits still. The cryptocurrency has been shunned for some time, and even though there is the halving in May, it seems as if there is a serious lack of interest or demand.
This is also due to the fact that Bitcoin simply has not been adopted with any serious influence. In some Third World countries, it is in use; but as far as acting like money, it’s far too volatile to do so.
A speculative market at best
Bitcoin has become a speculative market at best. It seems that every time that it gets a nice bounce, those who own large amounts of the digital currency are more than willing to jump it off on people chasing price.
While it shows promise, Bitcoin hasn’t been adopted on a large scale. Furthermore, the very fact that it is backed by nothing is a bit ironic considering that is the biggest complaint about fiat currencies.