To think that Elon Musk himself can manipulate the market that quickly does not necessarily invoke a lot of confidence by institutional traders.

The Bitcoin market initially fell during the trading session on Monday only to turn around and show signs of strength again as the $35,000 level has offered a bit of support. We are now on the positive side of the 200-day EMA, and have even seen the market rally to break through the $40,000 level one point after Elon Musk tweeted his affirmation of belief in the cryptocurrency. That being said, we have turned right back around to break below the $40,000 level, so while it does look very strong, I think it is very likely that we could see an attempt to break out to the upside. If we get that, then it is likely that we could go looking towards the 50-day EMA, which is just below the $45,000 level.

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At this point, if we were to break above the 50-day EMA, then we could go looking towards the $50,000 level rather quickly. That is an area that will attract a lot of attention, as it is a large, round, psychologically significant figure and an area where we have seen a lot of selling pressure. On the other hand, if we turn right back around and break down from where we are right now, that could be a significant sign of trouble. After all, to think that Elon Musk himself can manipulate the market that quickly does not necessarily invoke a lot of confidence by institutional traders.

To the downside, the $30,000 level will be an area that people pay close attention to, as it is a large, round, psychologically significant figure and an area where we have seen quite a bit of support more than once. Because of this, if we were to break down below the $30,000 level, then it is possible that we could see the market drop down to the $20,000 level. That being said, the Monday action does add a little bit more credence to the idea of recovery, so if we break above the highs of the day on Monday, then it is likely that we could continue to go to the upside. One thing is for sure: you need to be cautious and keep your position size somewhat small until we get confirmation one way or the other.