- There is still a lot of erratic activity in the bitcoin market, mostly on the upside.
- Perhaps a lot of noisy behavior as we go closer to the latest all-time high.
- However, in this market, it's a really typical occurrence as volatility is some of the allure of trading it.
- Either way, caution is certainly warranted in this environment.
Bitcoin Continues to Fight
We will keep examining this area of significant resistance—basically, the all-time highs—as Bitcoin rises. Thus, while we haven't yet broken out, we are on the right track. As I mentioned yesterday, I believe we are in a fight and would really like to see this thing back off. The thought of pursuing it all the way up here doesn't sit well with me. We need a daily closure and, at the absolute least, some kind of persistent upside breakout. However, I don't like that. It would be better for me if this creature retreated as far as 52,000.
Moving Average Just Below
That is also where the 20-day EMA is located, and I believe that is relevant. Generally speaking, I don't see the point in trying to establish too large of a stake because, no matter what you do, you are chasing trade pullbacks, and adding little by little will always be the greatest method to see Bitcoin experience a slight uptick in value. In addition, this market is seeing a lot of institutional inflow because of ETFs, so it will be interesting to watch how the market moves forward. Wall Street will eventually want to collect its profits after the first, higher shot.
This is no longer a market for "buy and hold believers." This has merely started to resemble any other financial instrument available. Not necessary because the price needs to decline, but I feel that many true Bitcoin believers would be disappointed by this. Simply said, it's one of those things where I don't think it's a one-way trip anymore because it will institutionalize. Having stated that, you can't be a seller at this time. The best strategy is, by far, to buy on dips. In this market, use caution and self-control over your emotions as you could see the occasional massive pullback before it is all said and done.
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