- Bitcoin has been very bullish for a while now, although the last couple of days have been a little bit calmer than the ones we've seen previously.
- This does make a certain amount of sense because the market shot straight up in the air for two months.
- A 90% gain since the beginning of the year was a bit too much.
So with that being the case, I think you continue to look at this as a buy on the dip market, especially as money continues to float into the ETF space with institutional traders and Wall Street trying to cash in on the Bitcoin craze. This will continue to be a bullish market, but whether or not it has the same type of momentum is a completely different question. I don't think it will due to the fact that it has been so overdone. And now a lot of the so-called hot money that went in and jumping into the ETF market has already done it. So now it's just a sort of a grind higher from what I can see. In fact, one thing that people need to get used to is the idea that perhaps the market starts to trade more like an index.
While it might be designed to go higher, the reality is that it can and will fall a little easier than it once did. After all, institutions now have the ability to short Bitcoin via the ETF. So it'll be interesting to see how the mechanics work out with that. $60,000 underneath continues to be a major support level with $75,000 above being major resistance.
In general, I think you continue to look at each dip as a value play. And if we can break above the $75,000 level, there's no reason to think we can't get to $80,000 next. This area will attract a certain amount of attention, but I think it is yet another round figure that we will blow through over the longer-term.
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