If we can break above the $45,000 level, Bitcoin will have momentum on its side.
Bitcoin has rallied ever so slightly during the trading session on Thursday to gravitate near the $40,000 level. The $40,000 level is obviously a large, round, psychologically significant figure, and an area where we have seen a lot of back-and-forth trading previously. Because of this, I think the market is essentially trying to figure out which direction wants to go long term.
It is worth noting that the 50 Day EMA is sitting just below the 42,000 level and is trying to fall from here. If it does fall further, then I think it could set up as a potential target if Bitcoin can continue to attract bidders. Breaking above that opens up the possibility of a move to the 200 Day EMA, which is currently just below the $44,000 level. This is an area that has been supported previously, so would not be a huge surprise to see something like that, although I do not necessarily know that it proves anything.
The reason I say this is that there does not seem to be a lot of momentum in the crypto markets overall. There seems to be a lack of demand, and as long as there are a lot of concerns around the world when it comes to risk appetite, it is difficult to imagine that a lot of institutional money is going to go flowing into Bitcoin. After all, Bitcoin is pretty far out on the risk spectrum, which is something that I think a lot of crypto traders are having to come to grips with these days. Gone are the days of 20% gains, as crypto is simply becoming more of a mature asset, and therefore will start to behave more like some of the older markets.
All of that being said, if we break down below the $35,000 level, that could be a threat to the overall trend. It is worth noting that while we have been grinding away sideways in general, we have had a slightly positive tilt. That is a good sign, and that perhaps suggests that underneath all of this sideways and seemingly listless action, there is real demand. I do not know whether or not that is the case, but as things stand right now, it certainly looks as if it is a possibility. If we can break above the $45,000 level, Bitcoin will have momentum on its side.
