The Bitcoin market got hammered on Tuesday to crash into the $60,000 level. This was a bit of a surprise, but it is also worth noting that the $60,000 level has offered quite a bit of support. That being said, even though we crashed the way we did, it does not necessarily negate the bullish flag, and I still remain bullish of Bitcoin in general. The $60,000 level holding is a good sign, and therefore I think it is likely that we will recover sooner rather than later.
The 50-day EMA currently sits at the $56,750 level and is starting to grind higher. As it approaches the $60,000 level, it is yet another reason to think that there should be support in this region. This is a market that I think will eventually find its footing and go back towards the highs again. That being said, if we do break down, then I would only look to buy Bitcoin “on the cheap” as we see value on dips.
Underneath, the $50,000 level is a large, round, psychologically significant figure that I will be paying close attention to, and I think it is worth noting that area is the “floor in the market.” Every time Bitcoin falls, it is a nice buying opportunity as I am sure you know by now. Ultimately, the market is likely to look at this as a value proposition. The value proposition is something worth noting, and I think this is a nice opportunity. In fact, I have been building up more of a position as we hit the $60,000 level, but you do not want to jump “all in” when it comes to Bitcoin right away, because of the volatility. Nonetheless, the measured move of $85,000 is still what I am working with, and I still fully believe that we will eventually get there. With this, I look at every pullback as an opportunity.
The market continues to be full of volatility, but that is why we trade cryptocurrency to begin with. Despite the sudden reaction to the downside, things have not changed, and it certainly looks as if the market should find reason sooner or later to continue to go to the upside, so I am building my position up even further in this type of environment.
