Bitcoin Gravitates Around the Same Level

If we can break above the $45,000 level, Bitcoin will have momentum on its side.

Bitcoin has rallied ever so slightly during the trading session on Thursday to gravitate near the $40,000 level. The $40,000 level is obviously a large, round, psychologically significant figure, and an area where we have seen a lot of back-and-forth trading previously. Because of this, I think the market is essentially trying to figure out which direction wants to go long term.

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It is worth noting that the 50 Day EMA is sitting just below the 42,000 level and is trying to fall from here. If it does fall further, then I think it could set up as a potential target if Bitcoin can continue to attract bidders. Breaking above that opens up the possibility of a move to the 200 Day EMA, which is currently just below the $44,000 level. This is an area that has been supported previously, so would not be a huge surprise to see something like that, although I do not necessarily know that it proves anything.

The reason I say this is that there does not seem to be a lot of momentum in the crypto markets overall. There seems to be a lack of demand, and as long as there are a lot of concerns around the world when it comes to risk appetite, it is difficult to imagine that a lot of institutional money is going to go flowing into Bitcoin. After all, Bitcoin is pretty far out on the risk spectrum, which is something that I think a lot of crypto traders are having to come to grips with these days. Gone are the days of 20% gains, as crypto is simply becoming more of a mature asset, and therefore will start to behave more like some of the older markets.

All of that being said, if we break down below the $35,000 level, that could be a threat to the overall trend. It is worth noting that while we have been grinding away sideways in general, we have had a slightly positive tilt. That is a good sign, and that perhaps suggests that underneath all of this sideways and seemingly listless action, there is real demand. I do not know whether or not that is the case, but as things stand right now, it certainly looks as if it is a possibility. If we can break above the $45,000 level, Bitcoin will have momentum on its side.