- You can see Bitcoin has initially fell during the trading session and really has not gotten back up from the initial plunge.
With that being the case, I think you have to look at this as a market that doesn't know what to do with itself because quite frankly, we just got the ETF and all we have done since then has been falling so with that being the case, I think you have to look at Bitcoin as a market that's in serious trouble because this has been, yet another sell the news type of event if you remember when we originally had the futures contract released That was the actual top of Bitcoin in the first bull market.
It looks like we're seeing the same thing play out in real time, although I don't necessarily think that Bitcoin is about to lose 80% of its value like it did back then. However, you have to keep in mind that now that there is a spot Bitcoin ETF, institutions can short this market much easier than they used to be able to, and a lot of people are going to be doing that. This could be what makes this market so much different this year than last.
The reality is, Bitcoin isn't used for anything. Not really. It's such a minuscule market that it's really easy to push around. Day-to-day use case of Bitcoin has yet to be realized and now that institutions have their hands on it in an easily accessible manner, Bitcoin needs to either put up or shut up. The next year is going to be very important for Bitcoin. As things stand right now from a technical analysis standpoint, the $35,000 level needs to hold.
The last couple of candlesticks have been very convincing to the downside, but I wouldn't necessarily be a seller yet. If we break down below $35,000, it's very likely we'll lose another $10,000 after that. The 200-day EMA will more likely than not coincide with that region as well, so that is also something to pay attention to. Either way, we're about to see some type of decision made with Bitcoin that could last for quite some time recapturing the 42,000 level would be extraordinarily bullish, but right now things don't look good.
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