The market is a situation that looks like trouble just waiting to happen, especially as we have seen so much negativity in the stock market after the Jerome Powell speech.
- The BTC/USD has fallen during the trading session on Friday as we continue to see negativity in the Bitcoin market.
- Jerome Powell has given his speech at Jackson Hole, leaving no doubt as to how the Federal Reserve is going to behave.
- As they continue to be hawkish, that will drive money away from riskier assets such as Bitcoin.
When I look at this chart, we had a massive selloff last week, and now we are getting ready to break down below the big candlestick from last week. If we break it down below the $20,000 level, it more likely than not will send Bitcoin much lower. If we break down below that level, then it’s likely that we go much lower. I do think that will end up being the trajectory going forward, as there are far too many things out there that could cause issues for Bitcoin not the least of which is that there is a lot of panic out there.
Selling Opportunities Ahead
Rallies at this point in time should be thought of as selling opportunities, especially the first signs of exhaustion. The 50 Day EMA sits below the $24,000 level and is starting to slope a little bit lower. That should be dynamic resistance, and I think a lot of people will continue to look at that as an area that is worth paying attention to. I think it is only a matter of time before the bearish traders come in and start taking advantage of rallies, but if we turn around and break above the $25,000 level that would change everything as far as momentum is concerned.