- Bitcoin briefly rallied Thursday before renewed selling pushed it lower, with $100,000 acting as fragile support.
- A break of $98,000 could trigger a deeper slide toward $80,000 as weakening momentum and EMAs point to mounting bearish pressure.
Bitcoin initially rallied during the early hours of Thursday but has seen selling pressure yet again as the buyers simply cannot hang on to gains at this point. That being said, there is a certain amount of importance to be placed on the $100,000 level as it was previously supported and has been acting as such recently. If we were to break below the $98,000 level, this is a market that could really unravel. At that point, I think we would see the Bitcoin market drop down to the $80,000 level.
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Rallies to be Faded
Rallies at this point in time more likely than not will continue to be faded as there's no real momentum. I also recognize that the 200-day EMA sits right at the crucial $108,000 level, an area that has been important more than once for both support and resistance, and the area is now starting to attract the attention of the 50-day EMA. If the 50-day EMA were to break below the 200-day EMA indicator, that kicks off the so-called death cross, and it is a bearish long-term signal. In that environment, I anticipate that the Bitcoin market will really start to fall apart as well.
I don't think Bitcoin is going to go to zero or anything like that, but I do recognize that Bitcoin is struggling quite a bit. I think that continues to be the problem in an environment that just doesn't favor a lot of risk assets beyond the standard ones such as stocks. Really at this point, I think something is going on with Bitcoin that looks rather ominous. I don't necessarily want to get short this market, but I do think that you will get an opportunity to buy Bitcoin at much lower levels.
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