- For a while now, the price of bitcoin has been fluctuating about $52,000, and this past Friday, we saw a little more of the same.
- Right now, all we're doing is searching for some kind of forward motion to keep climbing.
Bitcoin Drifts Lower
Looking at Bitcoin, we can observe that there has been some downward movement in the early hours of Friday, as there is still a lot of back and forth based on the $52,000 mark. Having said that, I believe that market players will continue to see this through the lens of what could happen next. After all, at the end of the previous year, there was all this hoopla over a possible Bitcoin ETF. After that news, we finally saw a jump above $47,500, a decline to $40,000, a rally to $52,000, and now we're just kind of sitting about figuring out where to go next.
A Wall Street ETF exists. Alright, what comes next? That, in my opinion, is the current issue facing the market. $52,000 is a figure that has been significant on multiple occasions. As a result, I believe there is some justification for the market memory-induced hesitancy. In any case, you do need to offset the 40% bounce from Halloween, even if you are an extreme bull on Bitcoin.
It's also important to keep in mind that Wall Street has a long history of inflating these figures before passing them along to individual traders. Your task is to purchase their riches. In light of this, a use case scenario is really what Bitcoin needs in order to have a long-term, sustained rally and reach the higher levels that everyone is always promoting. And currently, it just lacks that, at least not to the extent that would indicate it will be a widely utilized asset.
If that remains the case, Bitcoin turns into a speculative asset, and you shouldn't invest all of your money in it. It's not always something you want to have a lot of your portfolio in; sure, you could have gained 40% since Halloween, but there have also been many instances in the past where you could have lost 80%. It is still bullish right now and has the potential to retrace to the $47,500 mark while still appearing quite strong.
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