- The BTC/USD market rallied a bit during the trading session to break above the $22,250 level, gaining over 2% rather quickly.
- This was predicated on a lot of risk appetite coming back into the market, as the US dollar lost ground.
- We are light years away from some type of trend change, so it’s difficult to imagine a scenario where Bitcoin suddenly takes off to the upside and doesn’t look back.
The $24,000 level above should be thought of as potential resistance, so pay close attention to it. That’s an area where I would expect to see sellers jump back into the market, as it is where they did last time. It’s worth noting that a lot of the volatility in the crypto market has crept away, and that is a good sign, at least in the short term. There are still a lot of economic headwinds out there, so is difficult to imagine that a lot of money is going to go flying into Bitcoin in this environment. I think what you have in this situation is a simple relief rally, but whether it is the market trying to form a bottom remains to be seen.
Looking to Buy Dips
There is the potential of a “double bottom” near the $18,000 level, but I think we need to break above that $25,000 level above to confirm it. A lot of this is going to come down to US dollar strength or weakness, as it’s a great gauge on whether traders are willing to take on a lot of risk. Right now, at least in the last 24 hours, they seem to be able to. However, it would take very little to get the markets selling off again. Remember, most of these short-term rallies are nothing but noise, and in this case perhaps predicated on the idea of Ukrainian gains on the ground, which of course has nothing to do with Bitcoin. In other words, this is probably outside noise influencing the market in the short term. I still suspect that if you are a longer-term bull of Bitcoin, you probably have an opportunity to pick up more on a dip sooner rather than later. If we break down below the recent lows, that opens a move down to the $15,000 level next.
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