- As Wall Street joins the party, the bitcoin market is expected to continue to see a lot more film of activity, which is driving the price upward.
- If all else is equal, I believe that this market will remain extremely active and profitable, although you will have to be very careful with chasing it at the moment.
Once again, in the early hours of Friday, bitcoin has experienced a big increase as we continue to test the all-time highs. It remains to be seen if we can break over there but remember that the US Bitcoin ETF is a major factor in all of this. Naturally, people are ecstatic about Wall Street attending the party—at least when it comes to price speculation.
Since Bitcoin is now an institutional instrument and not necessarily an asset as we have seen in the past, the question now will be whether or not it alters the general sentiment of the market. If that turns out to be the case, traders, in my opinion, will continue to see this through the lens of something that might breakout for a longer-term move, and a buy on the dip strategy will be more widely used. You can't short this market anytime soon, but it doesn't necessarily mean you should be chasing it. There is definitely some FOMO going on, and given how overextended we are right now, I do believe a harsh correction is imminent. I would love to see this market collapse to the $52,000 level at this point because I don't think this correction will last very long.
The 20-day EMA is present at that level, which also serves as the previous resistance level. Thus, everything fits together really well in terms of a possible bottom. I believe that Bitcoin will aim for the $70,000 mark if we are able to break above the $65,000 mark. And I do believe that will occur at some point. It remains to be seen if it happens swiftly. Of course, that is a whole other discussion, but it is obvious that this is something that may come up in the near future. I purchase dips, but I also understand that sometimes we might be going a bit too far.
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