The Bitcoin market initially on Wednesday but turned around to show signs of life again as the $60,000 level looks to be supported in this market. In fact, by the end of the day, we did end up forming a bit of a hammer, which is a bullish sign. If we can break above the top of the hammer, it is likely that the market will continue to see buyers, as the $60,000 level will have shown itself to be supportive enough to keep the market afloat. Furthermore, we also have the 50-day EMA reaching towards the bottom of the hammer, so I think it is only a matter of time before we go higher.
Keep in mind that the Bitcoin market is bullish overall, and it does suggest that we are going to go towards the $65,000 level initially, perhaps then reaching towards the $70,000 level. That is an area that has offered a significant amount of resistance previously, so it will be interesting to see whether or not the market can build up the necessary momentum to finally break out. If we can do so, then it is likely that we will continue the longer-term “buy-and-hold” attitude. I fully anticipate that will eventually be the case, so I like the idea of buying Bitcoin, adding to a position as it works out in my favor. Even if we did break down below the 50-day EMA, I still have no interest in shorting this market.
If we do break down below the 50-day EMA, then I think that we have even more support underneath, especially near the $50,000 level as it is a large, round, psychologically significant figure. Furthermore, it is a structural area that had previously been resistance, so I think at this point it is very likely that we see the market as a potential value play, and it is almost impossible to short the Bitcoin market, because we are so bullish that it would take a complete change in attitude overall to make this market fall apart. It does not look to be very likely, and Bitcoin has plenty of inflows due to the ETF that has been released, so I think it is only a matter of time before we fulfill the bullish flag, which means we could go as high as the $85,000 level.
