- Thursday, we have seen the Bitcoin market drop again, but we have also seen buyers come in to pick up the dip.
- This is a good sign because if you have been following my work here you know that I have been suggesting that we are in the midst of a bottoming pattern.
- This doesn't necessarily have to be something very quick to come to fruition, and I think that's a good sign because we lost over 30%, and you do not want the market to just simply create a massive V pattern because that means that you have hot money coming in as opposed to thoughtful institutional money.
The market is still technically in a bearish phase, and I do see that, but if we were to break above the $96,000 level, I think that opens up a potential move to the $107,000 level with a little bit of noise being shown right around $100,000. This is not only due to the psychology of that number, but also the fact that the 200-day EMA is there.
A Transition to Institutional Maturity
I think we have to look at this as a situation where traders are going to have to be very cautious. They will probably have to look at this as a market that you have to think longer term and tactically on, instead of just running into Bitcoin for momentum. I think those days are probably just about gone.
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The 4-year cycle was something that people had been anticipating, but as the halving did not happen, at least not from a market reaction perspective, one has to assume that the behavior of Bitcoin has changed substantially. And that makes sense. Plenty of institutions are involved, and therefore, it's going to behave more like a normal mature asset.
To me, this looks like a classic bottoming pattern. It's just going to take some time to play out. Again, above $96,000, then I think we start to see momentum come into the picture. If we were to break below $84,000, I think that would be very bearish.
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