• The BTC/USD has done very little in the way of movement during the trading session yet again on Friday, as traders are waiting to see what the next Ponzi or meltdown will be in the crypto world.
• At this point, it looks like the 18,000 level will continue to offer resistance, so it is worth noting that the level of course is important.
• With this being the case, I think you got a situation where you could find little rallies that you can start shorting again.

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The 50-Day EMA is sitting right around the $19,000 level and is starting to drop from here. As we head into the weekend, one would have to be very cautious about the idea of headline risk, as the crypto world is on a knife edge now. We are clearly in “crypto winter”, and I just don’t see how those changes anytime soon. With that being the case, I think you’ve got a situation where you are looking at any rally as an opportunity to start selling again. Even the longer-term “crypto believers” recognize that Bitcoin is probably going to be bearish for a while. It is in that light that I suggest there is no rush to get involved in this market.

I’m not Willing to Buy Bitcoin Soon

When you look at the past year, you can see there was a lot of consolidation just above the $18,000 level, and when the market went to the $24,000 level, everybody was already talking about how the bottom had been put in, and those people are now all underwater. The question now is whether there’s going to be any type of rally into the end of the year? That is possible, but I think that’s going to be a selling opportunity as Bitcoin only serves one purpose, and that is to run away from loose monetary policy. Now that monetary policy is starting to tighten again, it makes quite a bit of sense as Bitcoin gets its head handed to it.

Ultimately, I have no scenario in which I’m willing to buy Bitcoin anytime soon, unless of course we had some type of change in the Federal Reserve monetary policy, something that just nowhere near happening anytime soon, and I do believe that you will have plenty of time to turn around and pick up Bitcoin down the road.

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