Bitcoin has been slightly positive during a choppy session on Friday despite a slew of headlines that caused a bit of chaos in traditional markets.

BTCUSD

Bitcoin has been slightly positive during a choppy session on Friday as we head into the weekend trying to determine whether or not we are in the middle of forming some type of bottoming pattern. I will say this: the sentiment in Bitcoin is absolutely miserable at the moment.

And a lot of times that's something worth paying attention to because it's normally a counter signal. So, there is the world in which we rally from here, but right now we just don't have the momentum. I think at the very least we need to look at this through the prism of a market that needs to clear the $72,000 level to be convincing with its bullish pressure.

Support Levels and Institutional Involvement

Short-term pullbacks do make a certain amount of sense, and it looks like the $65,000 level will continue to be a little bit of support. Anything below there could open up a move down to the $60,000 level, a large round psychologically significant figure that I think you need to hold on to in order to remain bullish at this point.

Bitcoin has seen an absolute brutal beating, and I think there are some people out there, the true believers of course, that are looking at this as a potential buying opportunity. If you are going to go that route, it's probably not advisable to jump in with both feet, but to slowly dip your toes into the water if you believe longer-term Bitcoin will rally is a reasonable expectation with a small position.

It’s going to be interesting to see how this plays out because unlike other massive selloffs that we had seen in the crypto markets, this time institutions are involved. They don't typically chase meltdowns like this. It's normally a long drawn-out protracted type of move.