The fact that we have stopped selling off in and of itself is a bit of a victory when you stop to think of all the things that are going on with risk appetite around the world.
Bitcoin
Bitcoin has been very quiet on Friday, which in the current environment is actually good news. The last couple of days have been very choppy as we are hanging around just below the crucial and psychologically important $90,000 level. But the fact that we have stopped selling off in and of itself is a bit of a victory when you stop to think of all the things that are going on with risk appetite around the world.
It is currently trapped in a consolidation phase, struggling to reclaim that psychologically important $90,000 level. But really, at this point, I think the primary drag on price is institutional caution as net outflows from US spot ETFs over the last 48 hours, and a spike in exchange inflows, roughly 17,000 Bitcoin moved to exchanges from earlier this week, signaled potential sell-side pressure. That has been the game for a while now.
Furthermore, macro headlines are visible as risk-off sentiment still lingers to a point with the Senate crypto bill reportedly on hold. The regulatory catalyst that bulls were hoping for seems to have been delayed.
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Crucial Support and Resistance
I see crucial support near the $88,200 level, and then again at the $86,000 level. Longer-term support can be found at $84,000, and if we break below there, it is probably a sign that we are about to see even more negativity.
To the upside, the 50-day EMA at $91,860 could be a little bit of a barrier and breaking that opens up $95,000. I do think that we are in the process of trying to turn things around from a longer-term standpoint. It is just that there is so much chaos at the moment.
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