Bitcoin fell during the early part of the Monday session, as appetite for digital assets continues to struggle.
BTC/USD
Bitcoin has fallen during the early hours on Monday and as we continue to see a lot of noisy behavior the market continues to struggle with the $68,000 level. This is an area that is a bit of a fulcrum for price. It is almost like a magnet for both buyers and sellers, but when I look at this current chart setup you can see that there has been a lot of back-and-forth behavior with the $72,000 level above being a bit of a barrier.
If we can break above that barrier then obviously it would be very bullish. Pulling back from here opens up the possibility of testing the $60,000 level which is a floor in the market from what I can see. If we were to break down below that $60,000 level, then we could really see Bitcoin falling apart.
Determining the Market Floor
At this point I think people are still trying to determine whether or not we are trying to find a floor in the market. Quite frankly now that the sentiment is so bad for Bitcoin it will be interesting to see if things can change. Ultimately this is a market that I think probably has to prove itself but eventually we will have to do something along those lines.
Right now, we are in the middle of consolidation and middle of trying to determine whether or not the buyers will return. Remember that this is now an institutional asset and institutions just are not interested. So, the best thing that I think we can see is a lot of sideways action while the market builds up a bit of a base.
Quite frankly the less you hear about Bitcoin the better it probably is for Bitcoin at least for the time being. We have had a vicious sell-off and these things do not happen in a vacuum, so you have to be somewhat cognizant of the fact that risk appetite for cryptocurrency is just horrible right now.