Baxia Markets
May 29, 2023

Bitcoin finds support near the $26,000 level

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Bitcoin finds support near the $26,000 level


During the trading session on Thursday, Bitcoin has seen a bit of support near the $26,000 level, as we are fighting the most recent breakdown. That being said, there is a lot of noise in this area as we are trading between the 50-Day EMA and the 200-Day EMA. It’s also worth noting that the 200-Day EMA sits right around the 38.2% Fibonacci level, which is also backed up by not only the $25,000 level, but market memory from where we had seen resistance previously.


From a technical analysis point of view, this is a market that looks like it is simply pulling back enough to find more buyers. From a fundamental point of view it might be a different story though, as we are clearly looking at a situation where risk appetite is waning. If that’s going to be the case, then Bitcoin could have some issues going forward.


Bitcoin faces volatility again

Bitcoin is obviously going to lead the way for the rest of the cryptocurrency markets, so obviously you will have to pay close attention to this chart regardless of which coin you are trading. That being said, as we are squeezing between these 2 major moving averages, the only thing you can probably count on is a lot of choppy volatility. Given enough time, this is almost certainly going to be a scenario where we could get a bit of a squeeze in one direction or the other, so looking at those moving averages as signals might be the best way to go.


If we do break above the 50-Day EMA, then Bitcoin could make a move toward the $30,000 level. On the other hand, if the market were to break down below the 200-Day EMA and extensively the $25,000 level, then Bitcoin could go looking toward the 50% Fibonacci level, which is at roughly $23,300. After that, then the 61.8% Fibonacci with level comes into the picture near the $22,000 level.


Scaling into positions will probably be the best way to approach the markets at the moment as there is so much volatility and uncertainty out there. In an environment like this, money management is going to be everything.

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