- Bitcoin was all over the place during the trading session on Friday as people have been very cautious about trying to put money to work still.
- There's been a major risk of move early during the Friday session, which of course found itself in this market.
- Keep in mind that the ETF inflows are by far the biggest driver of what's going on with Bitcoin.
- As long as it is in the forefront of the mix, the Bitcoin markets will continue to see a lot of inflows that are forced via Wall Street.
It is probably worth noting that we are a bit overdone. However, we have found support just above the $65,000 level. So it does suggest that we could see a little bit of a short term floor there. The 20 day EMA is racing towards there as well and therefore I think you've got a situation where we have a lot of reasons to get long.
Bitcoin is Overdone, So Be Prepared
However, I also recognize that since we are so overdone, we desperately need to see some type of pullback. A pullback from here should be thought of as a buying opportunity. I would love to see Bitcoin drop down to the $60,000 level or perhaps even as low as $52,000. I don't think it happens very easily, but it is a very distinct and very real possibility that you have to be aware of.
The ETF inflows on Wall Street will eventually run out, and when they do, the question then becomes what happens next? I believe that there is going to be a significant amount of profit taking sometime soon, and that might have been shown a little bit during the early hours on Friday. Whether or not we get a significant breakdown remains to be seen but every time we pull back, you have to be looking for some type of bounce that we can take advantage of and find plenty of value. I have no interest in trying to fight this massive trend that the people have decided to jump on and as a result this is a feedback loop.
Ready to trade Bitcoin USD? Here are the best MT4 crypto brokers to choose from.