The uptrend is probably being propped up by many on Wall Street trying to pick up value going forward.
Bitcoin markets have initially fallen during the trading session on Monday to shrink below the $50,000 level. However, we have turned around to show a massive amount of bullish pressure, to break above the 50-day EMA and go looking towards the $55,000 level. The $55,000 level is an area that would attract a lot of attention, as we have done a bit of consolidating there previously, and it is a large, round, psychologically significant figure.
The $50,000 level looks like it is being defended, so I think it will become even more important going forward. Bitcoin continues to attract a certain amount of institutional inflow, so it does make sense that eventually the recovery would, after a significant breakdown. Ultimately, the market looks as if it is trying to get back to the highs again, and the fact that we have held the uptrend line is another reason to think that we will go higher. The 50-day EMA is somewhat sideways, and I think it makes sense that the market will continue to go sideways.
Furthermore, when you look at the candlestick, it is not only a hammer, but it is also a huge move. In other words, there is a lot of money flowing into the market and I think that the trend will continue. This is a market that is eventually going to go looking towards the $65,000 level, and then beyond. I have no interest in trying to short this market, as we have had such a huge move higher and pullbacks continue to be bid up due to all of that institutional money trying to find value.
Most institutional money is of the longer-term timeframe, so it appears to me that the uptrend is probably being propped up by many on Wall Street trying to pick up value going forward. Beyond that, with the US dollar being hit against most currencies, Bitcoin will not be any different going forward, as the market will take that into account as well, as Bitcoin is a currency pair, despite the fact that crypto evangelists try to separate it away from other currency pairs. It is not until we break down below the $40,000 level that I would be concerned.