The Bitcoin market has come and gone during Friday’s trading session, while we continue to dance around the $ 7,000 level. That, of course, is a large, round, psychologically significant number, but I think at this moment what we are considered as the market trying to solve if it can break a little or not.
All things being equal, we also have the 50-day EMA preparing to cross below the 200-day EMA and that in itself will also cause some problems. That is the so-called “cross of death” that is very negative.
Another thought worth paying attention to is that there is also a downward trend line there, so I think the resistance is too strong to allow Bitcoin to move much higher from here.
If we break and close Dollars below the level of 7000 Dollars in a daily close, it is possible that the market reaches the level of 4800 Dollars, a longer-term objective that I have determined due to the descending triangle that we had broken in the handle of 10,000 dollars.
Previously we have bounced significantly because the Chinese suggested they were going to investigate the blockchain, but since then they have turned around, since the People’s Bank of China told investors that buying Bitcoin was not the same as buying crypto currency, and that the black chain is not necessarily going to be connected in that scenario.
Another thing worth paying attention to is that the Chinese government seems to be determined to take strong measures against cryptocurrency flying from the country, and as China is one of the biggest users of Bitcoin, which makes many people equate to China with Bitcoin.
At this point, it is feasible for the market to see more downward pressure as the Chinese leave Bitcoin, at least for now. I think we will eventually reach that level of 4800 dollars, but it can take a while to get there. In fact, it is not until we exceed the level of 9000 dollars that I would be forced to think of buying this market.
This is a horrible looking graph, and with the strengthening of the US Dollar in general, that should continue to work against the value of Bitcoin.