Bitcoin has been a little bit positive during the trading session on Monday, as traders look to continue to build a base in a potential turnaround. This is a large area that I think will remain very important for the time being.
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As long as we can stay above $84,000, this is a market that I think given enough time will find its bottom and turn things around. It's an institutional asset now with so many institutions out there buying into the Bitcoin market via spot ETFs that it behaves more like a Wall Street asset, and I think that's a lot of what's going on here. There are real questions about what's going to be next for Bitcoin and crypto in general as adoption still is a little bit sluggish – but that’s not a surprise as there are so many moving pieces at the moment.
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Institutional Influence and Market Basing
Nonetheless, I do think institutional traders are at least interested in holding the line here, so short-term bounces I think make quite a bit of sense. Ultimately, I think given enough time, we may try to attack the 50-day EMA, which is right around the $91,430 level, and then after that the $95,000 level.
If we were to break down below the $84,000 level, then that might open up a drop of some significance, but it is worth noting that we are now about two and a half months from the plunge and have been simply treading water. That's very common for this market to spend enough time to bore everybody out of the market, to have them thinking about something else, and then it rips higher. I get this sneaking suspicion we aren't far from that again, so I like buying the dips, but I also recognize this is a short-term range-bound trading type of environment.
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