The Bitcoin market went back and forth on Wednesday as it continues to try to make all-time highs. We did briefly do that during the session but gave back the gains as it looks like a little bit of consolidation is ahead. Nonetheless, we have recently broken above the top of a crucial bullish flag, which measures for a move all the way to the $85,000 level. Because of this, I remain bullish, and I think that any short-term pullback at this point in time will end up being a nice buying opportunity. The $60,000 level ends up being a bit of a “floor in the market” from what I can see, so I do think that it is only a matter of time before that level comes into focus on any type of selloff.
That being said, I would be surprised to see the market drop that far, but even if it did, it would not be the end of the world. Remember, Bitcoin tends to move rapidly, so a 10% correction would not be much out of the ordinary, and could just be a typical day depending on how you look at it. With the structure of the market being as such, it looks like the 50-day EMA is trying to reach towards the $60,000 level, which will only add more credence to that region. It is sloping higher and trying to pick things up, so I would not be surprised at all to see a certain amount of interest paid to that indicator if we get anywhere near it.
To the upside, if we get a daily close above the $70000 level, then it is likely that we will go forward to try to fulfill that target from the bullish flag. I think $85,000 sounds ridiculous, but you can make that argument every $10,000 for the last year or so. Crypto continues to be one of the hottest sectors for investment, and now that we have an ETF that is supporting the Bitcoin market suggests that we are going to continue to see a lot of retail inflow, even from people who would not normally be involved in the crypto market. With this, I continue to like the idea of buying on dips and I do not see anything in the short term at least that could cause major problems.
