Underneath, if the market is ready to go down to that level, we could then go down to the $12,000 level. The $12,000 level is an area that we took off from to kick off the overall uptrend, and it would be a complete “round-trip.” With this, the market then starts to see an opportunity for building up a longer-term position. This does not necessarily mean that the market is going to bounce from there and never look back, it is going to be a process. After all, bottoms don’t happen immediately, they are an overall process.

Bitcoin Likely to Continue Drifting Lower

If we were to try to take out the $24,000 level, then we could make a bigger move to the outside, perhaps trying to get to the 200-Day EMA near the $28,000 level. That obviously would be a huge move higher and would attract a lot of attention. Whether or not that happens is a completely different question, but I think you need to keep in the back of your mind that it very well could.

This is a market that continues to suffer with the idea of risk appetite being eviscerated, especially as the US dollar continues to take off. Also, we have the situation that the Federal Reserve is going to continue to be very aggressive with its monetary policy, so it should more likely than not come into the picture of what happens with crypto, as people are very cautious about taking on risk in this environment. Remember, Bitcoin has a lot of institutional investors in it now, so therefore they are not likely to get aggressive until all the Federal Reserve steps away from tightening. We are nowhere near that, so I think Bitcoin more likely than not breaks down further.

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