The 50-Day EMA is sitting above and causing a bit of resistance, and therefore it’s likely that we will continue to see sellers in that general vicinity. Even if we were to break above there, it’s likely that the $25,000 level above is a major resistance barrier. It’s not until we break above all that region that I would consider buying Bitcoin. Furthermore, we would also need to see some type of fundamental change in the situation, as the central banks around the world continue to tighten monetary policy. If we are fighting inflation in the United States, the US dollar will make it very difficult for Bitcoin to continue attracting inflows.

Crypto Winter Drives Out Bulls

If we break down below the $18,000 level, then the $15,000 level is my next target. After that, we could be talking about a move down to the $12,000 level, an area where we started the last bullish move from. In that scenario, I would start to accumulate Bitcoin, because I think it would offer a significant amount of value. That does not mean that it will go up right away, and we could go sideways for ages. This is normal for Bitcoin, because we occasionally go through a major “crypto winter” when nobody seems to want it. We are during that now, and they typically last for a couple of years based upon the short history that we have seen. Either way, this is a market that would have to change quite a bit for me to become bullish. If you can trade CFD markets, then you could be talking about selling on a breakdown, or even fading rallies.

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